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What would be the cash value of a \$400,000,000 Jackpot?

Topic closed. 7 replies. Last post 10 years ago by guesser.

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md
United States
Member #14047
April 20, 2005
580 Posts
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 Posted: February 27, 2007, 3:33 pm - IP Logged

I'm curious if any of the mathematicians we have here can figure what the cash value of a \$400,000,000 Jackpot would be?

Thanks

Mcminnville, Oregon
United States
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December 13, 2003
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 Posted: February 27, 2007, 3:44 pm - IP Logged

Mega Millions cash value would be roughly \$236 million and Powerballs cash value would be \$192 million on a \$400 million jackpot.-weshar75

md
United States
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April 20, 2005
580 Posts
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 Posted: February 27, 2007, 3:45 pm - IP Logged

Thanks

United States
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November 4, 2006
3930 Posts
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 Posted: February 27, 2007, 5:18 pm - IP Logged

I'll post what it all is after ther draw weds. night...:)..Oh yeah..

NY
United States
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October 16, 2005
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 Posted: February 28, 2007, 3:25 am - IP Logged

Weshar gave you fairy accurate answers for right now, but the cash value will vary as  interest rates change, so the answers that are right this week may be wrong in a couple of months. Any change in the payment schedule will result in big changes in the cash value for a given annuity value. Dividing the cash value by the annuity value of the current jackpot will give you the percentage that the cash represents at that time.

With the roll, MM now has a cash value of \$158.6 million for an annuity of \$267 million.  158.6 / 276 =  .594, so the cash value is 59.4% of the annuity *for this drawing*. For the last drawing it was about 58.5%. That's enough of a difference to change the cash value of a \$400 million jackpot by almost \$4 million.

Because PB  has a slower payout for the annuity they can offer a bigger annuity for a given amount of cash. Lately the cash value for PB has been right around 48% of the annuity.

Kentucky
United States
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February 14, 2006
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 Posted: February 28, 2007, 8:25 am - IP Logged

I can make another \$110 million if wait until I'm 90 but if I take the cash now I'll probably wear myself out in less than 10 years.

What a dilemma.

United States
Member #17555
June 22, 2005
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 Posted: February 28, 2007, 9:21 am - IP Logged

It all depends where you're playing.

In Afghanistan, the equivalent value would probably be a couple of buckets of grain.

United States
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June 16, 2006
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 Posted: February 28, 2007, 1:50 pm - IP Logged