Overview of Induction:
Keep in mind that an induction proof consists of three parts:
- Proving a base case.
- Assuming that the hypothesis you're proving holds for some $n$, where $n$ is greater than whatever value your base case used for $n$. So if you used $n=1$ in the base case, you might say "assume that, for $n = k$, (the thing you're trying to prove) holds".
- Proving that, under this hypothesis in the previous step, that the successive step is implied. That is, "our base case and our induction hypothesis imply the formula holds for $n = k+1$. The bolded is very, very important: it generally falls apart if you don't use the induction hypothesis (the second step that you assume holds).
Applying This To Your Case:
So in your case, we have
- Base case: Assume $n=1$ and verify the formula that results. Pretty trivial, basically amounts to $1/2 = 1/2$.
- Induction hypothesis: Assume that the formula holds for $n=k$, i.e. we assume
$$\frac{1}{2} + \frac{1}{6} + \frac{1}{12} + ... + \frac{1}{k(k+1)} = \sum_{n=1}^{k} \frac{1}{n(n+1)} = 1 - \frac{1}{k+1}$$
- Induction: Verification for $n=k+1$, i.e. showing from the previous
$$\frac{1}{2} + \frac{1}{6} + \frac{1}{12} + ... + \frac{1}{k(k+1)} + \frac{1}{k+1(k+2)} = \sum_{n=1}^{k+1} \frac{1}{n(n+1)} = 1 - \frac{1}{(k+1)+1} = 1 - \frac{1}{k+2}$$
How We Verify The Induction:
We notice: we can pull out the last term (where $n=k+1$) of the summation:
$$\sum_{n=1}^{k+1} \frac{1}{n(n+1)} = \frac{1}{(k+1)(k+2)} + \sum_{n=1}^{k} \frac{1}{n(n+1)}$$
This second sum? It's implied by our induction hypothesis to be $1 - \frac{1}{k+1}$ and thus
$$\sum_{n=1}^{k+1} \frac{1}{n(n+1)} = \frac{1}{(k+1)(k+2)} + 1 - \frac{1}{k+1}$$
Simplify the latter sum and we get
$$\sum_{n=1}^{k+1} \frac{1}{n(n+1)} = \frac{1+(k+1)(k+2)-(k+2)}{(k+1)(k+2)} = \frac{1+k^2 +3k +2-k-2}{(k+1)(k+2)} = \frac{k^2+2k+1}{(k+1)(k+2)} = \frac{(k+1)(k+1)}{(k+1)(k+2)} = \frac{k+1}{k+2}$$
We make use of a handy trick here:
$$k+1 = (k+1)+(1-1) = (k+1+1)-1=(k+2)-1$$
Then...
$$\sum_{n=1}^{k+1} \frac{1}{n(n+1)} = \frac{k+1}{k+2} = \frac{(k+2)-1}{k+2} = \frac{k+2}{k+2} - \frac{1}{k+2} = 1 - \frac{1}{k+2}$$
Notice: this is what we sought to verify in our induction step. Thus, the induction is completed.