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powerball cash value

Topic closed. 5 replies. Last post 11 years ago by Just6ntlc.

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spy153's avatar - maren

United States
Member #28409
December 15, 2005
1198 Posts
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Posted: March 28, 2006, 9:35 pm - IP Logged

what the....?????? are they trying to pull? MM's cash value is almost as high as powerball's.
Hit With Stick bad lottery people, bad lottery.

voir-vous dans mes reves!Cool

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    Morrison, IL
    United States
    Member #4657
    May 13, 2004
    1884 Posts
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    Posted: March 28, 2006, 11:53 pm - IP Logged

    I have an idea - just ignore the annuity values. Mega Millions simply sells more tickets per draw than Powerball, enough to get the same cash jackpot in seven rolls it takes Powerball nine rolls to attain. It's not the MUSL's fault that the Mega Millions population outnumbers the Powerball population by 60 million.

      Uff Da!'s avatar - InCelebration 001.jpg
      Washington State
      United States
      Member #33973
      February 26, 2006
      347 Posts
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      Posted: March 29, 2006, 12:37 am - IP Logged

      The "jackpots" for MM and PB are not comparable.  MM is a traditional fixed annuity for 26 years, with all payments equal.  PB, by contrast, is a graduated annuity, with lower payments in the early years and larger payments in later years.  The amount of increase in payment each year is 4%, which is a fairly good estimate for average long-range inflation.  So, though the payments aren't equal, they should be approximately equal in "buying power."  In addition, the PB annuity is for 30 years, not 26. 

      Obviously, the present value (cash value) of the two types of annuities would not be equal even if the "jackpot" amount is equal, since money received sooner is more valuable than equal dollars received later.  After all, you could be investing that money in the meantime.

      You may want to check out the details of the two annuities here:

      http://www.usamega.com/mega-millions-jackpot.htm

      http://www.usamega.com/powerball-jackpot.htm  (You'll need to click on "annuity payment schedule" under your state to see the graduated payments).

        dvdiva's avatar - 8ball

        United States
        Member #2338
        September 17, 2003
        2063 Posts
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        Posted: March 29, 2006, 1:07 am - IP Logged

        Most people aren't smart enough to know the difference and the morons in the press just continue the problem. Reporting on the actual post-tax cash amount would take some effort on the part of the press. I find it odd that only the US has this problem. Canadian and European games all have cash prizes already and in both Canada and Europe it's tax free for now.

          spy153's avatar - maren

          United States
          Member #28409
          December 15, 2005
          1198 Posts
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          Posted: March 29, 2006, 9:58 am - IP Logged

          I don't really know what I'm complaining about....

          actually, I would be happy with any cash value they want to give me (in millions, of course)
          Confused

          And it's not like I am going to win anytime soon anyway. What?

          voir-vous dans mes reves!Cool


            United States
            Member #16612
            June 2, 2005
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            Posted: April 1, 2006, 11:54 am - IP Logged

            spy, I hope PB continues to roll and reaches the cap. Also, PB's cash value is less because of backload payments. People are most interested when it reaches the cap.