Does anybody know, when and why anybody (really, I'm just asking about CFAI exam) would ever want to use the approximate formulas sprinkled all over Reading 19 (Foreign Exchange Parity Relations)?
Yea because the difference between the two will not be significant enough to impact your answer...
Chances are the question will be more theoretical than computational. They might ask us to compare the IRP between 2-3 countries and see if it holds or not, for which you can simply do the approximation and see if the differences are the same.