| Places | Tens | Ones | Tenths | Hundredths | Thousandths | |
|---|---|---|---|---|---|---|
| Number | 8 | 7 | . | 5 | 4 | 3 |
| Rounded Number | 8 | 7 | . | 5 | 4 |
- 4 is in the hundredths place and 3 is in the thousandths place
- Since the digit in the thousandths place (3) is less than 5, the digit in the hundredths place (4) does not change
- The digits to the right of the hundredths place are dropped
- 87.543 rounded to the nearest hundredth (two decimal places) = 87.54
