If Sam has an investment of $200 at a 10% annual simple interest rate, what will it be worth after one year?

To determine the future value of an investment using simple interest, you start with the principal amount and calculate the interest earned over the specified period. In this case, Sam's investment is $200 at an annual simple interest rate of 10%.

The formula for simple interest is:

Interest = Principal × Rate × Time

Substituting Sam's values into the formula gives:

Interest = $200 × 10% × 1 year

Interest = $200 × 0.10 × 1

Interest = $20

Now, to find the total value of the investment after one year, you add the interest earned to the principal:

Total Value = Principal + Interest

Total Value = $200 + $20

Total Value = $220

Therefore, after one year, Sam’s investment will be worth $220. This clearly establishes that $220 is indeed the correct answer.