Define some primitives:

         (define (square x) (* x x)) 
         (define (compose f g) (lambda (x) (f (g x)))) 

Define the procedure:

 (define (repeat f n) 
    (if (< n 1) 
        (lambda (x) x) 
        (compose f (repeat f (- n 1))))) 

Test with:

         ((repeat square 2) 5) 



Another solution using the linear iterative way.

 (define (repeat f n) 
   (define (iter n result) 
     (if (< n 1) 
         (iter (- n 1) (compose f result)))) 
   (iter n identity)) 

The above answer does not follow the book's instructions. The book instructs "Write a procedure that takes as inputs a procedure that computes f and a positive integer n and returns the procedure that computes the nth repeated application of f." A correct answer is as follows:

 (define (repeated f n) 
   (lambda (x) (cond ((= n 0) x) 
                      ((compose (repeated f (- n 1)) f) x))))) 

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