The document explains how to calculate the area of a circle. It first discusses the difference between circumference and area. It then shows how a circle can be cut up and rearranged to form a parallelogram. This allows the area formula for a parallelogram, Area = Base x Height, to be used. The base is equal to half the circumference which is equal to radius x pi. The height is equal to the radius. Therefore, the area of a circle is equal to the radius squared times pi. Some examples are provided to illustrate calculating the area of different circles using this formula.