| Places | Ones | Tenths | Hundredths | Thousandths | |
|---|---|---|---|---|---|
| 1 | |||||
| Number | 0 | . | 0 | 3 | 8 |
| Rounded Number | 0 | . | 0 | 4 |
- 3 is in the hundredths place and 8 is in the thousandths place
- Since the digit in the thousandths place (8) is greater than or equal to 5, add 1 to the digit in the hundredths place (3)
- 1 + 3 = 4, so the digit in the hundredths place becomes 4
- The digit in the thousandths place is dropped
- 0.038 rounded to the nearest hundredth (two decimal places) = 0.04
