The simple interest on a $20,000 loan at an interest rate of 8 percent after 5 years can be calculated using the formula:
Simple Interest = Principle × Rate × Time
In this case, the principle is $20,000, the rate is 0.08 (8 percent written as a decimal), and the time is 5 years.
Using the formula:
Simple Interest = $20,000 × 0.08 × 5 = $8,000
Therefore, the simple interest on a $20,000 loan at an interest rate of 8 percent after 5 years is $8,000.