Short answer: yes.
Slightly longer answer ...
For very small errors, multiplying by the power is right. You can see that because of the standard expansion:
(1+e)^n ~ 1 + ne + n(n-1)e^2/2 + ...
When e is small enough, e^2 is very small, so we can ignore everything that follows.
When e is slightly larger we can use more terms in the expansion, and that works nicely. That happens in the post about the birthday problem, where an extra term is used from the expansion for log(n).
So you don't get it for free, but it's not a lot of extra work.
In the case of 1.024^5, which is in the post, we get:
e=0.024
n=5
print n * e
-> 0.12
So the first approximation of the error is 12%
print n*e + n*(n-1)/2*e**2
-> 0.12575999999999998
So the extended approximation is 12.576%. We can compare that with the actual error:
print (1+e)**5
-> 1.125899906842624
Pretty close.
Even longer answer: Binomial Theorem.