| Places | Ones | Tenths | Hundredths | Thousandths | Ten Thousandths | Hundred Thousandths | |
|---|---|---|---|---|---|---|---|
| Number | 0 | . | 0 | 3 | 1 | 2 | 5 |
| Rounded Number | 0 | . | 0 | 3 | 1 |
- 1 is in the thousandths place and 2 is in the ten thousandths place
- Since the digit in the ten thousandths place (2) is less than 5, the digit in the thousandths place (1) does not change
- The digits to the right of the thousandths place are dropped
- 0.03125 rounded to the nearest thousandth (three decimal places) = 0.031
