Law of Cosines Method: Trigonometry Rules!!!
Let the center of the semicircle be P, and the center of the small circle be Q. Additionally, let the midpoint of AB = M, and the midpoint of BC = N. I'm about to spit out constructions, so try to follow along:
We can construct a triangle MQP, with side lengths MQ = 2 + r, QP = 5 - r, and PM = 5 - 2 = 3.
Additionally, triangle NQP, with side lengths NQ = 3 + r, QP = 5 - r, and PN = 5 - 3 = 2.
Using the Law of Cosines (which I expect that you should know already) on NQP:
\((3 + r)^2 = (5 - r)^2+2^2-2(5-r)(2)\cos({QPN})=r^2+6r+9=r^2-10r+29-(20-4r)\cos({QPN})\)
\({{16r-20}\over{4r-20}}=\cos({QPN})={4r-5\over{r-5}}\)
Using the Law of Cosines on MQP: (and substitution)
\((2+r)^2=3^2+(5-r)^2-2(3)(5-r)\cos({QPM})=r^2+4r+4=r^2-10r+34+{(30-6r)(4r-5)\over{(r-5)}}\)
\(14r-30={-(6r-30)(4r-5)\over{(r-5)}}=-6(4r-5)=-24r+30\)
Note that cos(QPM) = -cos(QPN)
Solving this equation, you get 38r = 60, and r = 30/19.