If given a chance to win in the mega or california lottery, why am I receiving only 60% of the total declared prize? Where's the remaining 40% go?
2007-06-12 18:05:54 · 6 answers · asked by mel4unow04 1 in Games & Recreation ➔ Gambling
rhsauders is correct. If you take lump sum you forfeit the interest estimated to earn over the 21.x years of payment. go tot he detail page on MM. ALso keep in mind if you take lump sum you will pay close to 45 % of your winnings in State and Federal windfall taxes. Bit$$ aint it. It is better to take it in pieces if you do the math and expect to live out the payment time.
2007-06-12 18:17:13 · answer #1 · answered by Carl P 7 · 0⤊ 0⤋
it's called taxes, most it goes towards school, or atleast that's what they say in Texas, if you want all your money upfront they charge you interest, get the annual payment, atleast that way you have guaranteed income for 20 to 25 years
2007-06-14 07:12:29 · answer #2 · answered by Brandon B 2 · 0⤊ 0⤋
You have a choice: the full amount over a period of years, or a smaller amount right away. The difference is effectively interest, which you forego if you take the pot immediately.
2007-06-13 01:09:36 · answer #3 · answered by Anonymous · 3⤊ 0⤋
i dont think 40% should be lost but that 40% is taxes so that is y but i think it should only be like $100 or 5%. but hope it was good.
2007-06-13 01:11:02 · answer #4 · answered by Ruler Of Wax 2 · 0⤊ 3⤋
taxes
2007-06-13 01:13:32 · answer #5 · answered by Anonymous · 1⤊ 1⤋
UNCLE SAM
2007-06-14 23:57:10 · answer #6 · answered by paul s 4 · 0⤊ 0⤋