I personally tried to use DeMoivre's Theorem to solve this. Since (1+i)^n can be written in it's polar form as:
z^n = r^n (cos(nθ)+isin(nθ))
= √(2)^n (cos(nπ/4)+isin(nπ/4))
and (1-i)^n as:
z^n = √(2)^n (cos(n(-π/4))+isin(n(-π/4)))
so (1+i)^n + (1-i)^n can be written as
(1+i)^n + (1-i)^n = (√(2)^n (cos(nπ/4)+isin(nπ/4))) + (√(2)^n (cos(n(-π/4))+isin(n(-π/4))))
= √(2)^n (cos(nπ/4)+isin(nπ/4) + cos(n(-π/4))+isin(n(-π/4)))
Although once I got here, I was unsure as to where to go. If DeMoivre's Theorem the right approach here?
You seem to have lost track of where you're going.
You've partially carried out a calculation of separating this quantity into real and imaginary parts — you should finish this process.
And if you succeed, this gives an easy way to answer the given question: a complex number is real if and only if its imaginary part is zero.