Solve the following math problem efficiently and clearly:

- For simple problems (2 steps or fewer):
Provide a concise solution with minimal explanation.

- For complex problems (3 steps or more):
Use this step-by-step format:

## Step 1: [Concise description]
[Brief explanation and calculations]

## Step 2: [Concise description]
[Brief explanation and calculations]

...

Regardless of the approach, always conclude with:

Therefore, the final answer is: $oxed{answer}$. I hope it is correct.

Where [answer] is just the final number or expression that solves the problem.

Problem: A square is inscribed in a circle.  A smaller square has one side coinciding with a side of the larger square and has two vertices on the circle, as shown.  What percent of the area of the larger square is the area of the smaller square?

[asy]
draw(Circle((0,0),1.4142));
draw((1,1)--(1,-1)--(-1,-1)--(-1,1)--cycle);
draw((0.2,1)--(0.2,1.4)--(-0.2,1.4)--(-0.2,1));
[/asy]
user