Answer
To approximate $$1.03 e^{0.04}.$$
Notice that $1.03\approx 1$ and $0.04 \approx 0$ and we know that $1.03 e^{0.04} \approx 1.0720$.
We, therefore, let
$$z=f(x, y)=x e^{y}$$
we let $x=1$, $d x=0.03, y=0,$ and $d y=0.04$
Then
$$
\begin{aligned}
d z &=f_{x}(x, y) d x+f_{y}(x, y) d y \\
&=e^{y} d x+x e^{y} d y
\\
&=e^{0}(0.03)+1 \cdot e^{0}(0.04) \\
&=0.07, \\
f(1.03,0.04) &=f(1,0)+\Delta z \\
& \approx f(1,0)+d z \\
&=1 \cdot e^{0}+0.07 \\
&=1.07 \\
\text { Thus, } 1.03 e^{0.04} & \approx 1.07 \\
\text { Using a calculator, } & 1.03 e^{0.04} \approx 1.0720 .
\end{aligned}
$$
The error is approximately $0.0020.$
Work Step by Step
To approximate $$1.03 e^{0.04}.$$
Notice that $1.03\approx 1$ and $0.04 \approx 0$ and we know that $1.03 e^{0.04} \approx 1.0720$.
We, therefore, let
$$z=f(x, y)=x e^{y}$$
we let $x=1$, $d x=0.03, y=0,$ and $d y=0.04$
Then
$$
\begin{aligned}
d z &=f_{x}(x, y) d x+f_{y}(x, y) d y \\
&=e^{y} d x+x e^{y} d y
\\
&=e^{0}(0.03)+1 \cdot e^{0}(0.04) \\
&=0.07 \\
f(1.03,0.04) &=f(1,0)+\Delta z \\
& \approx f(1,0)+d z \\
&=1 \cdot e^{0}+0.07 \\
&=1.07 \\
\text { Thus, } 1.03 e^{0.04} & \approx 1.07 \\
\text { Using a calculator, } & 1.03 e^{0.04} \approx 1.0720 .
\end{aligned}
$$
The error is approximately $0.0020.$