Given a square $ABCD$ with side $1$, and a square inside $ABCD$ with side $x$, find (in terms of $x$) the radio $r$ of the circle tangent to two sides of $ABCD$ and touches the square with side $x$. (See picture).
Since the circle is tangent to two sides of the squares then the diagonal of $ABCD$ passes through the center of the circle and the point of contact between the circle and the smaller square. Then $r\sqrt{2} + r + x\sqrt{2} = \sqrt{2}$.