| Places | Hundreds | Tens | Ones | Tenths | Hundredths | Thousandths | |
|---|---|---|---|---|---|---|---|
| 1 | |||||||
| Number | 1 | 2 | 3 | . | 8 | 7 | 8 |
| Rounded Number | 1 | 2 | 3 | . | 8 | 8 |
- 7 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 (7)
- 1 + 7 = 8, so the digit in the hundredths place becomes 8
- The digit in the thousandths place is dropped
- 123.878 rounded to the nearest hundredth (two decimal places) = 123.88
