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Hypothetical Situation

Topic closed. 7 replies. Last post 13 years ago by winningdraw.

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Bemidji MN
United States
Member #3340
January 13, 2004
110 Posts
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 Posted: February 18, 2004, 7:12 am - IP Logged

Let's say that a lottery jackpot has reached \$100 million with a \$50 million cash option. Two people pick the winning numbers and thus would share the jackpot. One chooses annuity, the other cash. What does the lottery do then? How would they determine the amounts to be paid? Can anyone enlighten?

Rick

"Announcing your plans is a good way to hear God laugh"

Member #2673
November 2, 2003
497 Posts
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 Posted: February 18, 2004, 7:14 am - IP Logged

They would give the first person \$25 million cash and give the second person an annuity of \$50 million.

Good luck,
Jake

China
Member #3032
December 16, 2003
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 Posted: February 18, 2004, 7:45 am - IP Logged

why?

New Jersey
United States
Member #2376
September 25, 2003
582 Posts
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 Posted: February 18, 2004, 8:47 am - IP Logged

Because if both of them wanted annuity then they both would get \$50 (annuatized) each.  But if one person wants the cash option, the cash option is rougly 1/2 (i know its a little more than half) of the annuatized amount, so the person who wants cash, gets 1/2 of his share of the annuatized amount and hence \$25 million (before taxes).

NYC
United States
Member #3706
February 13, 2004
96 Posts
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 Posted: February 18, 2004, 9:28 am - IP Logged

I'll do that math.

Example 215 million for 2/20

215/1.685 will be the cash around 127

Take the 127x.25 is 31.75

127-31.75= 95.25

Then what ever your state tax is NY 7.7%

95/.077 is 7.315

95-7= 88

So if any wins in NY look forward into getting around 88mil. Probably 90mil

Also If you do share it with any divide 215 by # of winner and do the rest

New Jersey
United States
Member #2376
September 25, 2003
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 Posted: February 18, 2004, 1:30 pm - IP Logged

here you go giotonia.  So you dont have to do the math next time.

http://www.biggamelottery.com/jackpot.htm

NYC
United States
Member #3706
February 13, 2004
96 Posts
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 Posted: February 18, 2004, 2:20 pm - IP Logged

Ok I feel like an A. LOL. I thought the NY tax is 7.7% right. It went up.

Also I should buy my tickets from NJ no tax

United States
Member #3757
February 18, 2004
15 Posts
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 Posted: February 18, 2004, 3:11 pm - IP Logged

giotonia:

I live in NY as well, I wish the tax was still that low.  I have the luxury of living near the border with Canada, so I can just cross over the border and getting the same goods less expensive, less taxed.  I wish I could do the same with the lotto tickets....

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