Let the given statement be $P(n)$,i.e.,
$P(n): \frac{1}{2}+\frac{1}{4}+\frac{1}{8}+\ldots+\frac{1}{2^{n}}=1-\frac{1}{2^{n}}$
For $n=1$,we have
$P(1): \frac{1}{2}=1-\frac{1}{2^{1}}=\frac{1}{2}$,which is true.
Let $P(k)$ be true for some positive integer $k$,i.e.,
$\frac{1}{2}+\frac{1}{4}+\frac{1}{8}+\ldots+\frac{1}{2^{k}}=1-\frac{1}{2^{k}}$ $(i)$
We shall now prove that $P(k+1)$ is true.
Consider
$\left(\frac{1}{2}+\frac{1}{4}+\frac{1}{8}+\ldots+\frac{1}{2^{k}}\right)+\frac{1}{2^{k+1}}$
$= \left(1-\frac{1}{2^{k}}\right)+\frac{1}{2^{k+1}}$ [Using $(i)$]
$= 1 - \frac{1}{2^{k}} + \frac{1}{2^{k+1}}$
$= 1 - \left(\frac{2}{2^{k+1}} - \frac{1}{2^{k+1}}\right)$
$= 1 - \frac{1}{2^{k+1}}$
Thus,$P(k+1)$ is true whenever $P(k)$ is true.
Hence,by the principle of mathematical induction,the statement $P(n)$ is true for all natural numbers $n \in N$.