The figures , , , and shown are the first in a sequence of figures. For , is constructed from by surrounding it with a square and placing one more diamond on each side of the new square than had on each side of its outside square. For example, figure has diamonds. How many diamonds are there in figure ?

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Problem © Mathematical Association of America (MAA), American Mathematics Competitions. Reproduced for non-commercial educational use. Solution and commentary are original to this site.