first off let's check how much is 5% of hmmm say "x"

so if we increase "x" by that much, that's just "x + 0.05x" = 1.05x. Now, let's find how much is 5% of that

so our "x" went up by 0.1025x, now let's conver that to a percent, 0.1025 * 100 = 10.25%.