First we need to prove the basis. If we let $n=3$, then $(1+ \frac{1}{3})^3 < 3$
$(\frac{3}{3}+ \frac{1}{3})^3 < 3$
$(\frac{4}{3})^3 < 3$
$(\frac{64}{27}) < 3$
The inequality statement is true
For $P(n), (1+ \frac{1}{n})^n < n$
We assume that $(1+ \frac{1}{n})^n < n$ is true for $P(n+1)$
$(1+ \frac{1}{n+1})^{n+1} < n+1$
$(1+ \frac{1}{n+1})^{n})(1+ \frac{1}{n+1})^{1}) < n+1$
And then I'm stuck afterwards. I know that there are a variety of problems that use induction and they have different methods, but I only know the ones that are similar to $1+2+3+...+n = n+2$ or $7^n-8^n$ is divisible by $8$. Is there any technique to tackle this type of problem?