Writing $\frac{1}{2}+i$ as $1+i+\frac{i^2}{2}$ in Needhams Complex Analysis text

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This question is from the first chapter of Needham's "Visual Complex Analysis Text"

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My question is in regards to the sequence they get in the solution below. Getting the first term in the sequence to be $1$ and the second being $1+i$, follows naturally, and when I think about the third term in the sequence it's clearly the complex number $\frac{1}{2}+i$. How did they get the equivalent expression $1+i+\frac{i^2}{2}$?

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The author used the following equivalences:

$$\begin{align}\text{East} &: i^0 =i^4=i^{8\ }=...=1\\ \text{North} &: i^1 =i^5=i^{9\ }=...=i\\ \text{West} &: i^2 =i^6=i^{10}=...=-1\\ \text{South} &: i^3 =i^7=i^{11}=...=-i\end{align}$$

And in general $i^k = i^{k\ \ (\text{ mod } 4)}$.

It's worth mentioning also that multiplication by $i$ is a rotation by $90^o$ or $\frac{\pi}{2}$ radians. By multiplying the $n^{th}$ move by $i$ and dividing by $n+1$, you are following the presented algorithm.