I know that. But the point is that the opposite is happenning, while the rates are getting closer to 0. :)
So the exact opposite of what you said is happenning.. which is why I wrote my original post in the first place.
Taking annuity or cash over one another is a personal choice. I will always choose cash. I don't care what someone else will do. What I do care about is what I wrote in my original post.. it troubles me that they would advertise a higher annuity jackpot for the sole purpose of higher sales (since higher advertised jackpots = more sales).
And don't forget, that the "jackpot" is both an annuity jackpot and a cash jackpot. Depends on which you look at. Cash on hand, is the true jackpot in my opinion. We're the only country in the world that does this annuity nonsense with our lotteries - everywhere else advertises the cash value and does not tax lottery winnings.
Regardless of what some say, a smart investor who wishes to do research and such can easily earn more on his/her investments than using zero coupon bonds. In fact, they could just use the same investment vehicles that the lotteries do, if they want annuity. Only disadvantage is the entire amount is taxed first, as opposed to if you let the lottery invest it for you (it's taxed in installments).
My question still stands.. why are they advertising a higher annuity jackpot relative to their cash on hand when the interest rates have not risen?