Given Principal amount P = Rs 1000
Time period T = 1 year
Rate of interest R = 5% p.a.
We know that simple interest = (P × T × R)/100
On substituting these values in above equation we get
SI = (1000 × 1 × 5)/100
= Rs 50
Total amount paid after 1 year = Principal amount + Interest
= Rs 1000 + Rs 50
= Rs 1050