| Places | Ones | Tenths | Hundredths | Thousandths | |
|---|---|---|---|---|---|
| Number | 3 | . | 5 | 0 | 1 |
| Rounded Number | 3 | . | 5 | 0 |
- 0 is in the hundredths place and 1 is in the thousandths place
- Since the digit in the thousandths place (1) is less than 5, the digit in the hundredths place (0) does not change
- The digit in the thousandths place is dropped
- 3.501 rounded to the nearest hundredth (two decimal places) = 3.50
