system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: Why does everyone take the lump sum rather than annuity payments? If the 1.3 billion dollar jackpot is only worth 806 million, why wouldn't it be a better idea to opt for the payments?

Why leave half a billion sitting on the table?
gpt
Because it's not on the table yet.

The $800 million is how much they have in the prize pool. If you take the cash option, that's what you get. If you choose the annuity, they invest the money for you and you get the money plus interest over 30 years.

If you take the cash option, you can (and certainly should) invest it so you can earn interest.

So, you're not leaving anything on the table -- the difference it interest that hasn't been earned yet.