Compute approximately: 1° (1.004)/(0.996); 2° (0.998)^5
Compute approximately: 1° $\dfrac{1.004}{0.996}$; 2° $\bigl(0.998\bigr)^{5}$; 3° $\bigl(1.002\bigr)^{15}$.
Explanation of Method
One rule applied three times — and how the error grows with the exponent.
Step 1: The rule
\[ \bigl(1+\alpha\bigr)^{n} \approx 1+n\alpha \qquad (|\alpha|\ll1). \tag{$*$} \]
Step 2: Part 1°: a quotient of two perturbations
Write both numbers as deviations from $1$ and apply $(*)$ with $n = -1$ to the denominator: \[\frac{1.004}{0.996} = \bigl(1+0.004\bigr)\bigl(1-0.004\bigr)^{-1} \approx \bigl(1+0.004\bigr)\bigl(1+0.004\bigr).\]
Multiplying out and dropping the term in $\bigl(0.004\bigr)^{2}$: $\frac{1.004}{0.996} \approx 1+2\times0.004 = 1.008$.
Step 3: Part 2°: $\bigl(0.998\bigr)^{5}$
\[ \bigl(1-0.002\bigr)^{5} \approx 1+5\times\bigl(-0.002\bigr) = 1-0.010 = 0.990. \]
Step 4: Part 3°: $\bigl(1.002\bigr)^{15}$
\[ \bigl(1+0.002\bigr)^{15} \approx 1+15\times0.002 = 1.030. \]
Step 5: How accurate are they?
The discarded second-order term is $\dbinom{n}{2}\alpha^{2} = \dfrac{n(n-1)}{2}\alpha^{2}$, which grows quadratically with the exponent — it is not simply $\alpha^{2}$. The three cases therefore behave quite differently:
\[\begin{array}{c|c|c|c|c} \text{case} & \text{estimate} & \text{exact} & \text{error} & \text{predicted } \tbinom{n}{2}\alpha^{2} \\ \hline 1.004/0.996 & 1.008 & 1.0080321 & 3.2\cdot10^{-5} & 2\alpha^{2} = 3.2\cdot10^{-5} \\ \bigl(0.998\bigr)^{5} & 0.990 & 0.9900399 & 4.0\cdot10^{-5} & 10\alpha^{2} = 4.0\cdot10^{-5} \\ \bigl(1.002\bigr)^{15} & 1.030 & 1.0304237 & 4.2\cdot10^{-4} & 105\alpha^{2} = 4.2\cdot10^{-4} \end{array}\]
\[\text{The predicted and actual errors agree in every row} \;\;\checkmark\]
\[\text{Cases 1}^{\circ}\text{ and 2}^{\circ}\text{ are good to four decimals; case 3}^{\circ}\text{ only to three} \;\;\checkmark\]
Result
Final answer:
\[\boxed{\,\frac{1.004}{0.996}\approx1.008, \qquad \bigl(0.998\bigr)^{5}\approx0.990, \qquad \bigl(1.002\bigr)^{15}\approx1.030\,}\]
Remark
Remark. The third case is the cautionary one. Although $\alpha = 0.002$ is the smallest perturbation of the three, the coefficient $\dbinom{15}{2} = 105$ makes its error an order of magnitude the largest. The quantity that must be small is not $\alpha$ but $n\alpha$ — here $n\alpha = 0.03$, and the error is roughly $\tfrac12(n\alpha)^{2} = 4.5\cdot10^{-4}$. For $n = 100$ the same $\alpha$ would give $n\alpha = 0.2$ and the linear estimate would be useless.