If the length of the sides of the small square is x, the sides of this triangle are:

x/2, x+r2/2 and r

By pythagoras,
( 1 2 x )2 +( r2 2 +x )2 = r2


x2 4 + 2 r2 4 +xr2+ x2 = r2


x2 +2 r2 +4xr2+4 x2 =4 r2


5 x2 +4xr2=2 r2

Substitute y=r2 (length of the side of the large square)
5 x2 +4xy= y2


5 x2 +4xy- y2 =0


x= -4y±(4y )2 +20 y2 10


x= -4y±36 y2 10


x= -4y±6y 10


10x=2yor-10y

ratio must be positive, therefore 10x = 2y, therefore y = 5x
QED

Solution to part B.

Submitted by Samantha Gooneratne, Colombo International School, Sri Lanka. Well done Samantha! Her teacher also solved the problem using similar triangles, which I have include below Samantha's solution.

Let X be the mid point of PQ, C the center of the circle and r the radius.

RX + XC = r
Hence PR sin 60 o + CM cos 60 o = r

3 2 + 1 2 r=r


Therefore
3.PQ=r

Now


LM=2(rsin60)


so
LM=3.r


LM=3.(3.PQ)


LM=3PQ

Solution using similar triangles:

NR is a diamter so NLR = 90 o
but NLM = 60 o so RLP = 30 o
Now LPR = 120 o so LRP = 30 o
Hence LP = pr but PR = PQ
so LP = PQ = QM
LM = 3 PQ