|Posted: April 3, 2003, 8:32 pm - IP Logged|
Todd: I didn't want to be too "wordy"
The cash value of an annuity prize depends on interest rates, the length of (usually 20-30 years), and the type of, the annuity (usually the cash value is 50-60% of the annuity). Annuity prizes include future interest, which is why the cash option amount is always "less" than the advertised annuity amount. Lottery winners, when given the choice of cash or annuity, are much more likely to take the lump sum over the yearly payments.
Todd: I would think you would edit, if need be, "winning" definitions.