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Big reduction in PB cash value

Topic closed. 1 reply. Last post 3 years ago by Think.

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Skibunnylk's avatar - Lottery-059.jpg
Thread Starter

United States
Member #157701
July 28, 2014
150 Posts
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Posted: September 15, 2014, 4:38 pm - IP Logged

Has anyone else noticed a big reduction in the cash value of Powerball? When the jackpot had annuity of $127 million, the cash value was $77.3 million.

The following draw the annuity went up $22 million while the cash value gained $13.4 million making it $90.7 million with an increase of 60.9%, the upcoming drawing raised the annuity $22 million up to $171 million but the cash value added $11.3 million to sit at $102 million thereby only increasing 51.3%.

How can the percentage change be so drastic in less than a week? To keep it comparable with the previous drawing, the annuity needs to be $167-168 million and not $171 million.

    Think's avatar - lightbulb
    Marquette, MI
    United States
    Member #20541
    August 20, 2005
    727 Posts
    Offline
    Posted: September 15, 2014, 8:01 pm - IP Logged

    Annuities work on interest rates.  When interest rates go up you need less cash to bloat up the annuitized value.

    Interest rates have gone up/