5% off $1,000 = $950. You save $50.
Equation: $1,000 − (5% × $1,000) = $1,000 − $50 = $950.
Another way to read it: you pay 95% of the original price — that's $950.
$950. The discount is $50 and the final price you pay is $950.
You pay $950 (before tax). That's $1,000 minus a $50 discount.