It is recommended to start off by converting all given data into SI units to avoid confusion later on. Write down the total energy of the system and that it is conserved: E(tot)= KE+PE and KE=(mv^2)/2; PE=(kx^2)/2. The potential energy is directly proportional to the amplitude, thus it is easy to estimate the change. As for the kinetic energy, the speed is equal to v=wx and thus, the kinetic energy is KE=(mw^2x^2)/2. Find the relationships between kinectic/potential energies of 40 cm and 38cm amplitudes. For an example: PE1/PE2=(kx1^2)/2 * 2/(kx2^2) = x1^2/x2^2 = 1.108. Later it is found that KE1/KE2=PE1/PE2=1.108. Now with all the components gathered it is possible to find the change in total energy of the system: E2(tot)/ E1(tot) = (KE2+PE2) / (KE1+PE1) = (KE2+PE2)/( 1.108(KE2+PE2)) = 0.9100%=90%. The loss of energy is 100%-90%=10%.