Definition of Terms
Inscribed Circle:
Given a polygon a circle is considered "inscribed" if it is tangent to each side of the polygon. An inscribed circle is illustrated below in square ABCD.

Tangent:
A line, ray, segment, or plane which intersects a curve or curved surface in exactly one point. An inscribed circle(see above) is an example of a point of tangency.
Perpendicular:
Two segments, rays, or lines are perpendicular if the lines containing them form a 90 degree angle.
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