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If you were to draw all of the diagonals in the regular octagon, you would see that the octagon would be divided into eight congruent isosceles triangles.
The base of each of these triangles is the side of the octagon, or b.
The height of each of these triangles is the apothem, or a.
The apothem is really just the radius of the inscribed circle of the octagon.
Now the area of each isosceles triangle is given by: but in this problem, h = a(the apothem) and b = b(the side), so we have: but since there are eight of these triangles in the entire octagon, the area of the octagon can be expressed, in terms of a and b, as: