| Places | Tens | Ones | Tenths | Hundredths | Thousandths | |
|---|---|---|---|---|---|---|
| 1 | ||||||
| Number | 1 | 2 | . | 3 | 4 | 5 |
| Rounded Number | 1 | 2 | . | 3 | 5 |
- 4 is in the hundredths place and 5 is in the thousandths place
- Since the digit in the thousandths place (5) is greater than or equal to 5, add 1 to the digit in the hundredths place (4)
- 1 + 4 = 5, so the digit in the hundredths place becomes 5
- The digits to the right of the hundredths place are dropped
- 12.345 rounded to the nearest hundredth (two decimal places) = 12.35
