Step 1: Draw a square ACDF with AC=xy. Step 2: Cut AB=z, so that BC=(xy−z). Step 3: Complete the squares and rectangle as shown in the diagram. Step 4: Area of yellow square IDEO= Area of square ACDF− Area of rectangle GOFE− Area of rectangle BCIO− Area of red square ABOG Therefore, (xy−z)2=(xy)2−z(xy−z)−z(xy−z)−(z)2 =(xy)2−xyz+z2−xyz+z2−z2 =(xy)2+z2−2xyz Hence, geometrically we proved the identity (xy−z)2=(xy)2+z2−2xyz.