How it's calculated
Pₜ = P₁ × 1.05^(t−1), P₁ = jackpot ÷ Σ 1.05^(t−1)
30 graduated annual payments rising 5%/yr; P₁ = first payment, t = payment year (1–30). Net each year = gross − federal tax − state tax.
Common questions
Why do the annual payments increase each year?
Powerball and Mega Millions grow each annuity payment by 5 percent, so later checks are larger than the first.
How many payments does the annuity make?
Thirty. You get one immediate payment followed by 29 annual ones.