1. The problem is to simplify the fraction $\frac{3}{20}$.\n\n2. The formula for simplifying fractions is to divide the numerator and denominator by their greatest common divisor (GCD).\n\n3. Find the GCD of 3 and 20. Since 3 is a prime number and does not divide 20, the GCD is 1.\n\n4. Divide numerator and denominator by 1:\n$$\frac{\cancel{3}}{\cancel{20}} = \frac{3}{20}$$\n\n5. Since the GCD is 1, the fraction $\frac{3}{20}$ is already in simplest form.\n\nFinal answer: $\frac{3}{20}$