| Places | Ones | Tenths | Hundredths | Thousandths | |
|---|---|---|---|---|---|
| Number | 0 | . | 5 | 5 | 4 |
| Rounded Number | 0 | . | 5 | 5 |
- 5 is in the hundredths place and 4 is in the thousandths place
- Since the digit in the thousandths place (4) is less than 5, the digit in the hundredths place (5) does not change
- The digit in the thousandths place is dropped
- 0.554 rounded to the nearest hundredth (two decimal places) = 0.55
