Am I meant to assume a_i is defined the same way as a_n for each of 1<= i <= n-1 ?
Yes, another way to look at it is to reform the inequality as
a~n~ is the largest integer s. t.
a~n~ <= k^n^ * (x - a~0~ - a~1~/k - a~2~/k^2^ - ... - a~n-1~/k^n-1^)
if that makes it clearer?
Given this we know that a~1~ is the largest integer s.t. k*(x - a~0~) >= a~1~
(Why does a~1~ even exist might be a good question?)
Then show that a~1~ <= k-1 (just substitute in).
Assume that a~i~ <= k-1 is proven for all integers i=1,...,n (where n might be 1) and show that a~n+1~ <= k-1 is true as well.
Hope this helps? If not please do say so