Buy $5 Mega Millions Lottoy get 1 free!

[juiio]

Originally posted by: bigred2k
The lottery is a tax on people who are bad at math

Ever been to a casino?

It is just entertainment for most people. At least this way, your $1 goes to things like state parks, education, etc, rather than a casino tycoon.

 

[krazydimund]

this would be a good deal, except my inner child died 2 years ago, preventing any hope of me winning from crossing my mind. *sob*

 

[Otaking]

Wow, this is pretty good. I might spend $10 next time.

 

[Mike7]

Originally posted by: PerryD
Being an engineer, I don't play the lottery (either state or megamillions) until the jackpot reaches the odds. So, if the odds are 175M:1, I'll wait until the jackpot reaches that amount before putting my couple dollars down.

You fail to take into account that a $175 million jackpot doesn't really mean the jackpot winner gets $175 million. Rather, he gets a lump sum payment of around $93 million (or an annuity totalling $175 million, which works out to a present dollar value of the same $93 million). Minus - call it a third - for taxes. That comes out to a top prize of around $60 million or so.

So you're actually saying that as an engineer, you won't play at 175M:1 odds, until the jackpot reaches 35% of those odds.

BTW, the only way they get away with giving such highly misleading jackpot figures is because it's the state who pockets the profits. Believe me, I couldn't advertise "FREE COMPUTER! Buy this computer for $1200, and receive a $1200 mail-in rebate!" if I intended to pay the $1200 rebate not in a lump sum, but as 20 annual payments of $60 each.

But to the lottery people, 20 annual payments of $8 million = "$160 million jackpot."

 

[SameerK]

what interest rate would you be using in order to do that annuity?

edit: I'm calculating about...7%? Exactly what source would someone get that number from?

 

[Mike7]

Originally posted by: SameerK
what interest rate would you be using in order to do that annuity?

As you calculated, the figures I gave assume an interest rate of around 7%. Naturally, the actual interest rate used could be somewhat higher or lower, but the essential fact remains unchanged - that the present value of an annuity is less than the sum of all the payments. So an advertised jackpot of $x million, isn't really worth $x million.

Exactly what source would someone get that number from?

I don't honestly know on what basis the lottery determines the yield. I'm sure one could find out without too much difficulty, if truly interested.

 

[PremiumG]

Originally posted by: QueBert

Originally posted by: Gigantopithecus
Throw away $6 for the price of $5!

odd's are piss poor, but the Jackpot is over $100 million. And the game's only been running for 5 draws now. Show me ANYTHING that can possibly make me 100+ million for 6 and I'll never play the lottery again.

odd's are 1:175million *cough* but the payout is siiiiiick. I'll never win, but I throw my 2 bucks a week in, why not?

1:175 million odds??!!!

i calculated that your odds are higher if you take $2 to the casino and bet black everytime (with your winnings on the line) and hitting that 100 million dollar jackpot; you'll have to hit black about 23-24 times in a row but that's higher odds than 1:175 million

 

[Beiruty]

The annoying thing with lotto, even with 1:170 millions odds of wining, there will be one who will win it!. However, it is not me!.

It is not worth paying for more than 1 ticket. $1

 

[mainomega]

One month i won the lotto 3 times in a month.... ummm $16 total though

 

[Mike7]

If you really want to make a fortune, forget about the lottery. I saw this tv show that explained exactly what to do:

Step 1 - Collect underpants
Step 2 - ???
Step 3 - Profit!

Alternatively, I hear the nephew of the late deputy Oil Minister from Nigeria is willing to cut a trustworthy American in for 30% of the value of a $6 million secret Swiss bank account, in exchange for assistance in getting the funds released.

 

[Jbog]

The money you guys pay for the tickets go to pay the winners and pay for the operating costs. I would love to know how many cents on the dollar actually goes to pay for the education.

 

[delroy]

6 for the price of 5?

the last time i fell for that one, i wound up eating 4 arby's roast beef sandwhiches by my self

,,, not pretty

 

[mainomega]

Originally posted by: delroy
6 for the price of 5?

the last time i fell for that one, i wound up eating 4 arby's roast beef sandwhiches by my self

,,, not pretty

LOL

 

[exit88]

Originally posted by: chynkboi
Donate your money to state now!

This doesn't seem to be working in California.

 

[Anonemous]

Originally posted by: exit88

Originally posted by: chynkboi
Donate your money to state now!

This doesn't seem to be working in California.

 

[almostrice]

Originally posted by: exit88

Originally posted by: chynkboi
Donate your money to state now!

This doesn't seem to be working in California.

Thats right. They already have your money.

 

[Anonemous]

Originally posted by: almostrice

Originally posted by: exit88

Originally posted by: chynkboi
Donate your money to state now!

This doesn't seem to be working in California.

Thats right. They already have your money.

YMMV!

 

[thedealmaker]

mega millions is a waste of time and money. I heard that the chance of having you die in a plane crash or lighting is higher than winning lottery.

For mega lottery, I think the chance of having you survive 2 plane crashes on the same day is higher than this mega lottery.