The steps that Malcolm performed to simplify the expression
3.4
×
(
3.6
−
2.8
)
2
are shown.

Step
1
:
3.4
×
0.8
2
, determined by hand
Step
2
:
1.7
×
0.4
, determined by hand
Step
3
:
0.68
, determined using a calculator

Which statement is true?