Let's start with the circle. The length of wire that was used to form the circle isn't important right now, but we're given that this piece of wire formed a circle with radius, r. Therefore, the area of the circle = Pi*(r^2).
Before we find the area of the square, recall that the circumference of a circle with radius, r = 2*Pi*r.
This circumference is, in fact, equal to the length of the wire that was used for forming the circle.
The length of wire that remains to form the square = 40 - 2*Pi*r.
Since a square has 4 equal sides, each side of the square = 1/4 * (40 - 2*Pi*r) = 10 - (Pi*r/2)
The area of a square is the product of two sides which, in this case, equals [(10 - (Pi*r/2)]^2
Looks like the answer is (E)
I'm really old, but I'll never be too old to become more educated.