The keyword should be in the first sentence, and the last sentence, and the density should be once for every 100 words in the article. A 500 word article, would have the keyword 5 times.
Yes you are absolutely right here. Using keywords so many times is spamming. Well I generally use 2 keywords in 100 words.
5-7% keyword density is good.If the density of a keyword is too law,the SE will not pay much attention to your keyword.
Keyword density is the percentage of times a keyword or phrase appears on a web page compared to the total number of words on the page. In the context of search engine optimization keyword density can be used as a factor in determining whether a web page is relevant to a specified keyword or keyword phrase.