Answer
\[\$1,200\]
Work Step by Step
Calculation of the simple interest can be done by multiplying the principal amount with the rate of interest and respective duration of time.
Compute the simple interest as mentioned below:
\[\begin{align}
& \text{Simple interest}=\text{Principal amount}\times \text{Interest rate}\times \text{Time} \\
& =\$20,000\times0.08\times0.75\\&=\$1,200\end{align}\]
