STEP-BY-STEP ANSWER:
Step 1: Start with the initial condition (x0, y0) = (0, 1).
Step 2: Compute the first approximation: x1 = x0 + dx = 0.1. Then use y1 = y0 + f(x0, y0) * dx. Since f(x, y) = 1 + y, substitute y0 to get y1 = 1 + (1 + 1)*0.1 = 1 + 0.2 = 1.2.
Step 3: Compute the second approximation: x2 = x1 + dx = 0.2. Now y2 = y1 + f(x1, y1) * dx = 1.2 + (1 + 1.2)*0.1 = 1.2 + 0.22 = 1.42.
Step 4: Compute the third approximation: x3 = x2 + dx = 0.3. Then y3 = y2 + f(x2, y2) * dx = 1.42 + (1 + 1.42)*0.1 = 1.42 + 0.242 = 1.662.
Final Answer: y1 ≈ 1.2, y2 ≈ 1.42, y3 ≈ 1.662.