Bijou says the following steps can be used to find 0.62 of 7:

Step 1 Change "of” to the multiplication symbol.
Step 2 62×7=434
Step 3 There are 0 decimal places in 7 and 2 decimal places in 0.62 for a total of 2 decimal places in the factors.
Step 4 Move the decimal place in the product 2 places to the right to find the solution: 0.62 of 7 is 43,400.
In which step did she make her first error?