The area of a plane figure will be proportional to the square of a linear measure (such as a perimeter). If two plane figures are similar, then the constant of proportionality will be the same.
So, let's let the area of the larger octagon be:
[MATH]A_L=kP_L^2[/MATH]
And for the smaller octagon:
[MATH]A_S=kP_S^2[/MATH]
Now, we are told:
[MATH]A_L=\frac{5}{2}A_S[/MATH]
or:
[MATH]\frac{A_L}{A_S}=\frac{5}{2}[/MATH]
What do you get when you substitute in for the two areas, using the formulas above?