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Cash Lump Sum: A cash lump sum is a one-time payment that the lottery winner receives immediately, typically in the form of a large sum of money. The exact amount of the lump sum is usually less than the total advertised jackpot because it takes into account the present value of the future annuity payments and factors in potential investment returns.
Annuity Payment: An annuity payment refers to receiving the lottery winnings as a series of periodic payments over a specified number of years. The lottery organization invests the jackpot amount and disburses the winnings to the winner in regular installments.
What is the difference between a cash lump sum and annuity payment in the lottery?
Annuity Payment: An annuity payment refers to receiving the lottery winnings as a series of periodic payments over a specified number of years. The lottery organization invests the jackpot amount and disburses the winnings to the winner in regular installments.
What is the difference between a cash lump sum and annuity payment in the lottery?