Hint: We will first convert 5% into fraction using the concept of percentage and then we will use multiplication and division to get the final answer.
Complete step-by-step answer: Before proceeding with the question, we should understand the concept of percentage. A percent is a number that represents the fractional part out of 100 (per cent literally means per one hundred). It is often denoted using the percent sign, "%", or the abbreviations "pct.", "pct"; sometimes the abbreviation "pc" is also used. A percentage is a dimensionless number (pure number). Example- 94% means \[\dfrac{94}{100}\]. Likewise, we can represent a denominator of 100 with decimals by moving the decimal point by 2 places. So \[94\times \dfrac{1}{100}=0.94\]. Thus \[94\times \dfrac{1}{100}=0.94\]. Thus \[94%=0.94=\dfrac{94}{100}\]. So according to the definition of percentage 5% is \[\dfrac{5}{100}\]. In the question 5% of 500 has been asked which means we have to find what quantity of 500 is 5%. And here in the question “of” means multiplication. So using this information we get, \[\,\Rightarrow 5%\,\text{of 500}......\text{(1)}\] Now simplifying equation (1) we get, \[\,\Rightarrow 5%\times \text{500}......\text{(2)}\] Now changing the percent into fraction in equation (2) we get, \[\,\Rightarrow \dfrac{5}{100}\times 500......(3)\] As 500 comes in the 100's table 5 times. Applying this in equation (3) we get, \[\,\Rightarrow 5\times 5=25\] Hence 5% of 500 is 25.
Note: Here in this type of question we have to remember how to convert percentage into fraction and we also have to keep in mind that ‘’of” means multiplication. We may get confused in equation (1) seeing ‘’of” so we need to be clear with the basic concepts.