Let the radius of the original disc be r, so its area A1 is pi * r^2. The diameter of this disc equals 2r, making it the radius of the cut-out disc, so the area A2 is pi * (2r)^2 which equals 4pi * r^2. The area of the remaining disc is A3, calculated as A1 minus A2, yielding pi * r^2 - 4pi * r^2 = -3pi * r^2, which implies a logical error in the problem phrasing where the cut-out radius must actually be r/2. Using r/2 for the cut-out radius gives A2 = (pi * r^2)/4 and A3 = (3 * pi * r^2)/4. Multiplying A1 and A3 gives (pi * r^2) * (3 * pi * r^2 / 4) which equals 3pi^2 * r^4 / 4. The expression 16A2^2 evaluates to 16 * (pi * r^2 / 4)^2, which equals pi^2 * r^4. Comparing A1A3 to 16A2^2 shows 3/4 is less than 1, so A1A3 < 16A2^2.