Final answer:
Using the simple interest formula i = prt with a principal of $1000, rate of 5%, and time of 1 year, the simple interest calculated is $50.
Step-by-step explanation:
To find the simple interest using the formula i = prt (where i is the interest, p is the principal amount, r is the interest rate, and t is the time in years), we plug in the given values: p = $1000, r = 0.05 (or 5%), and t = 1 year.
By substituting these values into the formula, we get: i = $1000 × 0.05 × 1.
After performing the multiplication, the simple interest calculated is: i = $50.
Therefore, with a principal of $1000, an interest rate of 5%, and a time period of 1 year, the simple interest earned is $50.