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1000\left(1+\frac{1}{20}\right)
Reduce the fraction \frac{5}{100} to lowest terms by extracting and canceling out 5.
1000\left(\frac{20}{20}+\frac{1}{20}\right)
Convert 1 to fraction \frac{20}{20}.
1000\times \frac{20+1}{20}
Since \frac{20}{20} and \frac{1}{20} have the same denominator, add them by adding their numerators.
1000\times \frac{21}{20}
Add 20 and 1 to get 21.
\frac{1000\times 21}{20}
Express 1000\times \frac{21}{20} as a single fraction.
\frac{21000}{20}
Multiply 1000 and 21 to get 21000.
1050
Divide 21000 by 20 to get 1050.