The diagonal of the base is
sqrt(x^2 + x^2) =
sqrt(2x^2) =
sqrt(x^2) * sqrt(2) =
x*sqrt(2)
This should look familiar, since the diagonal of square base creates a 45-45-90 triangle, and sides of a 45-45-90 are x, x, x*sqrt(2). Note that this true because the base of your pyramid is a square. If it were a rectangle, we would just say the diagonal was sqrt(L^2 + W^2).
So, if the diagonal of the square base is x*sqrt(2), then half of it, the distance from the center of the base to a corner of the base, is x*sqrt(2)/2.
Then, the right triangle that connects the center of the base, the corner of the base, and the top of the pyramid has legs x*sqrt(2)/2 and y.
Using the Pythagorean Theorem:
c^2 = (x*sqrt(2)/2)^2 + y^2
c^2 = x^2*[sqrt(2)]^2/[2^2] + y^2
c^2 = x^2*[2]/[4] + y^2
c^2 = x^2/2 + y^2
c = sqrt(x^2/2 + y^2)
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