I have the following recursive relation (sequence):
\begin{align} a_1 = \sqrt{2}, \quad a_{n+1} = \sqrt{2 + a_n} \end{align}
My Try:
I'm a little skeptical of my manipulations near the end but it looks like it works out.
Base Case: Let $n=1$ then \begin{align} &a_2 = \sqrt{2 + a_1} \\ &a_2 < 2 \\ &\sqrt{2 + \sqrt{2}} < 2 \end{align} The base case holds.
Induction hypothesis: Let $n=k$
$$a_1 = \sqrt{2} \quad a_{k+1} = \sqrt{2 + a_k} \quad a_{k+1} = \sqrt{2}$$
Induction Step:
Now we have to prove that $a_{k+2} < 2$. Let $n=k+1$. \begin{align} a_{k+2} &= \sqrt{2 + a_{k+1}} \\ \implies a_{k+2} &= \sqrt{2 + \sqrt{2 + a_k}} \\ \end{align}
Now we have to show that $a_{k+2} < 2$. \begin{align} a_{k+2} &< 2\\ \sqrt{2 + \sqrt{2 + a_k}} &< 2\\ 2 + \sqrt{2 + a_k} &< 4 \\ \sqrt{2 + a_k} &< 2 \\ \end{align} Q.E.D
Are my steps correct?
Thanks for your time!
The title mentions proving that $(a_n)$ is increasing, but you don't seem to handle that.
More importantly, although you understand that the key to proving bounded-ness is $\sqrt{2+\sqrt2}<2$, you really need to work on the "style" of your induction proof. See for instance my answer here : Proof by Induction:
By writing the induction steps in full length and correctly, you should immediately see what's ok or wrong in your proof.
Can I suggest that you should at least really revise the part where you write "Let $n = k$". What does it mean? Both $n$ and $k$ are silent variables...
What you want to say is rather: let $n$ be an integer $\ge 2$ and let's assume that $P_n$ is true. Then blah, blah, which shows that $P_n \implies P_{n+1}$.
PS: for any induction proof, I can't recommend enough to write down in full length what the property $P_n$ is and, why not, the domain of $n$. Here that would be (formatting being a matter of taste):
$$ (n \ge 2)\quad P_n \; : \; 0 < a_n < 2 \quad\text{and}\quad a_n > a_{n-1}$$
That should make checking your initial case and your general case more "mechanical" (and thus easier) - it also makes your TA/exam corrector's life easier.
Late edit: I have tried to provide some basic help on induction proof writing here : Proof writing: how to write a clear induction proof?