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Answer should be 2x^2 (i.e. D)
Outer square area = 4x^2
therefore, diameter of circle will be = 2x
therefore, diagonal of inner square = 2x (i.e equal to diameter of the circle).
Lets say length of side of inner square = y
therefore, y^2 + y^2 = (2x)^2
therefore, 2y^2 = 4x^2
therefore, y^2 = 2x^2 (i.e. the area of the inner square).
Hit (D)


