Calculate the simple interest on a $20,000 loan at an interest rate of 8 percent after 5 years.(1 point)
The formula to calculate simple interest is:
Simple Interest = Principal x Rate x Time
Given that the principal amount (the loan) is $20,000, the interest rate is 8% (or 0.08 as a decimal), and the time is 5 years, we can plug these values into the formula:
Simple Interest = $20,000 x 0.08 x 5 years
Simple Interest = $8,000
Therefore, the simple interest on a $20,000 loan at an interest rate of 8% after 5 years is $8,000.