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cash percentages for PB and MM?

Topic closed. 4 replies. Last post 11 years ago by ryanm.

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United States
Member #22980
October 5, 2005
23 Posts
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Posted: October 5, 2005, 11:37 pm - IP Logged

Hey does anyone know the average percentage of the Jackpot for the cash values for powerball and Megamillions?  Powerball always seems lower.  I know this has a lot to do with bond values and annuity interest rates at the given time of drawing, but I was just wondering if Powerball was consistenly lower than MM why this would be?  Is more of the money being used for the state benificiaries?

 

Just curious

    Down's avatar - Sphere animated2.gif
    Riverside, Ca
    United States
    Member #21722
    September 14, 2005
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    Posted: October 5, 2005, 11:43 pm - IP Logged

    i think its 50% of the announced jackpot give or take


      United States
      Member #5565
      July 11, 2004
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      Posted: October 6, 2005, 12:08 am - IP Logged

      Powerball's annuity term is for 29/30 years/payments, which is longer than MegaMillions'.  Hence, it requires a smaller cash payout to advertise the same jackpot annuity value.

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        United States
        Member #22980
        October 5, 2005
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        Posted: October 6, 2005, 12:13 am - IP Logged

        Aha I see, thanks!  I'm guessing that MM is like 26 years or so huh?

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          Morrison, IL
          United States
          Member #4657
          May 13, 2004
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          Posted: October 6, 2005, 12:31 am - IP Logged

          Powerball's annuity term is for 29/30 years/payments, which is longer than MegaMillions'.  Hence, it requires a smaller cash payout to advertise the same jackpot annuity value.

            Also, Powerball adjusts its annuity jackpot for inflation, so that requires even less cash to pay a given annuity.  Mega Millions does not adjust its annuity for inflation.