B. 29.16 liters
Feedback Suppose a container contains x units of a liquid from which y units are taken out and replaced by water. After n operations, a quantity of pure liquid =x(1-yx)n units.
milk contained by the container now
=40(1-4/40)^3=40(1-1/10)3=40×9/10×9/10×9/10=4×9×9×9/100=29.16