MHB How would I prove this by induction?

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To prove the identity $$\sum_{k=0}^n\frac{n!}{n^kk!(n-k)!}=\frac{(n+1)^n}{n^n}$$ by induction, the induction hypothesis is stated as $$\sum_{k=0}^n\left({n \choose k}\frac{1}{n^k}\right)=\left(1+\frac{1}{n}\right)^n$$, which relates to the binomial theorem. The base case for n=1 is verified as true, showing that $$\sum_{k=0}^1\left({1 \choose k}\frac{1}{1^k}\right)=2$$ matches the expected result. The next step involves restating the induction hypothesis for n and determining the appropriate induction step to prove the case for n+1. The discussion emphasizes the importance of using binomial coefficients and identities in the proof process.
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How would I prove this by induction?

$$\sum_{k=0}^n\frac{n!}{n^kk!(n-k)!}=\frac{(n+1)^n}{n^n}$$
 
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I would begin by writing the induction hypothesis as:

$$\sum_{k=0}^n\left({n \choose k}\frac{1}{n^k}\right)=\left(1+\frac{1}{n}\right)^n$$

We can see this is simply a statement of a particular case of the binomial theorem. As such, we will find the following 3 identities useful:

[box=blue]$${r \choose 0}=1\tag{1}$$

$${r \choose r}=1\tag{2}$$

$${k \choose r}+{k \choose r-1}={k+1 \choose r}\tag{3}$$

where $(k,r)\in\mathbb{N}$ and $r\le k$[/box]

So, the first thing we want to do is show the base case $P_1$ is true:

$$\sum_{k=0}^1\left({1 \choose k}\frac{1}{1^k}\right)=\left(1+\frac{1}{1}\right)^1$$

We can see this simplifies to:

$$2=2\quad\checkmark$$

So, we restate our induction hypothesis $P_n$:

$$\sum_{k=0}^n\left({n \choose k}\frac{1}{n^k}\right)=\left(1+\frac{1}{n}\right)^n$$

What do you suppose our induction step should be?
 
Here is a little puzzle from the book 100 Geometric Games by Pierre Berloquin. The side of a small square is one meter long and the side of a larger square one and a half meters long. One vertex of the large square is at the center of the small square. The side of the large square cuts two sides of the small square into one- third parts and two-thirds parts. What is the area where the squares overlap?

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