This can be solved by using the concept of conservation of momentum. The total momentum of the system should be conserved, before collision and after collision.
Lets assume:
u1: initial velocity of the bullet
v1: final velocity of the bullet
u2: initial velocity of the block (it is 0 as it is in rest)
v2: final velocity of the block
By using the conservation:
m1u1 + m2u2 = m1v1+m2v2
remember: u2 = 0 (the block is in rest)
solving this will give:
v2 = m1(u1-v1)/m2
gives v2 = 0.5 m/Sec