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A piece of paper is in the shape of a right angled triangle and is cut along a line that is parallel to the hypotenuse, leaving a smaller triangle. There was a $35\%$ reduction in the length of the hypotenuse of the triangle. If the area of the original triangle was $34$ square inches before the cut, what is the area (in square inches) of the smaller triangle?

  1. $16.665$
  2. $16.565$
  3. $15.465$
  4. $14.365$ 
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