We have had national lotteries for close to 40 years, and most people - including journalists - still have no idea how to calculate the take home pay...
Headline Number - $1.3 billion
Cash Option - $707.9 million
Maximum Income Tax - 37% (starts at $578,000)
Take Home Pay - 707,900,000 X 0.63 = $446 million
If you have ZERO other income in 2023, you will take home an extra $175,000.
It has been ages since I did present value calculations. What is the interest rate used on that calculation form 1.3 billion to 707 million?