To calculate the simple interest, you can use the formula:
\[ \text{Simple Interest} = P \times r \times t \]
where:
- \( P \) is the principal amount (the initial loan amount),
- \( r \) is the annual interest rate (in decimal form),
- \( t \) is the time the money is borrowed for (in years).
For your case:
- \( P = 20,000 \)
- \( r = 8% = 0.08 \)
- \( t = 5 \)
Now plug the values into the formula:
\[ \text{Simple Interest} = 20,000 \times 0.08 \times 5 \]
Calculating this:
\[ \text{Simple Interest} = 20,000 \times 0.08 = 1,600 \] \[ 1,600 \times 5 = 8,000 \]
So, the total simple interest accrued over 5 years is:
\[ \text{Simple Interest} = 1,600 \times 5 = 8,000. \]
Therefore, the answer is $8,000.