My question is to sketch the set $\{ z \in \mathbb{C} | \left|\frac{z-i}{z+i}\right|<1\}$ in the complex plane.
I substituted $z$ for $a+bi$, but did not get anywhere:
$\left|\frac{a+(b-1)i}{a+(b+1)i}\right|<1\\ \left|\frac{(a+(b-1)i)(a-(b+1)i)}{a^2+(b+1)^2}\right|<1\\ \left|\frac{a^2-(ab+a)i+(ab-a)i+(b^2-1)}{a^2+b^2+2b+1}\right|<1\\ \left|\frac{a^2+b^2-1-2ai}{a^2+b^2+2b+1}\right|<1\\ \left|\frac{a^2+b^2-1}{a^2+b^2+2b+1}-\frac{2ai}{a^2+b^2+2b+1}\right|<1\\ \left(\frac{a^2+b^2-1}{a^2+b^2+2b+1}\right)^2+\left(\frac{2ai}{a^2+b^2+2b+1}\right)^2<1\\ \frac{a^4+2a^2+2a^2b^2-2b^2+b^4+1}{a^4+2a^2+4a^2b+2a^2b^2+4b+6b^2+4b^3+b^4+1}<1$
Rewrite the inequality as $|z-i|<|z+i|$. Then think geometrically in terms of distances from the point $z$ to the points $\pm i$.