Your answer is correct, but your approach is not clear since you didn't define the positions clearly.
I'm answering the question by assuming the representation of the palindromic numbers in decimal numerals.
This is the image for the position of the digits I used in my answer.
Now, for the first digit (i.e., for the position $1$), we can choose any $9$ digits except $0$ since we cannot use $0$ for the fifth digit (position $5$), otherwise it would be essentially a $4$-digit number. By choosing for the first digit, we're done with the fifth digit since the digit we choose for the first digit will be same for the fifth digit because we're looking for the $5$-digit palindromic numbers.
For the second digit (position $2$), we can choose any $10$ digits since it doesn't affect the total number of digits of the $5$-digit numbers. Hence we're done with the fourth digit (position $4$).
Since the position $3$ is self-palindromic in a $5$-digit number, we can choose any $10$ digits for the third digit (position $3$).
We've no other choices left. Therefore, we've $9×10×10$ or $900$ $5$-digit palindromic numbers.