First, you find 5% of $50.
To do this, you times 50 by 0.05. This is because if you were to turn 5% into a decimal, with 1.0 being 100%, 5% would become 0.05.
50 x 0.05 = 2.5
After you have the amount, simply add it onto the original $50.
50 + 2.5 = 52.5
The new price is $52.5.