|Posted: March 1, 2010, 1:53 am - IP Logged|
Right now Both Powerball and Mega Milions jackpots are almost the same amount however Mega Millions cash option is almost 20 million more why is that?
This has been discussed so many times. Simply put, the structure of the games are different. With Mega Millions, the jackpot is paid in 26 installments, each of which are the same amount. With Powerball, the jackpot is paid in 30 installments, with the installments gradually increasing each year.
REMEMBER, the cash option is not calculated from the annuity amount. It's the other way around. The annuity amount is calculated based on the amount of cash available(the cash value). This is where people mess up. They think to themselves "Mega Millions's cash option is xx% of the annuity, but because Powerball's cash option is only xx%, that means Mega Millions's cash option is better".
No, it's not "better", and Powerball's cash option isn't "worse". It's just because the games are different.