Rounding to the nearest cent means adjusting a monetary value to two decimal places, which represent cents in currency. It involves approximating the value so that it reflects a typical financial or cash transaction, where amounts are expressed in dollars and cents only.
Explanation
In practical terms, this process simplifies a number by ensuring it has only two digits after the decimal point. If the third digit to the right of the decimal (the thousandths place) is 5 or more, the second digit (the hundredths place) is increased by one. If it's less than 5, the second digit remains unchanged, and all digits beyond are dropped or rounded off.
Examples
- $4.563 becomes $4.56 (since 3 is less than 5).
- $4.567 becomes $4.57 (since 7 is 5 or more).
- $3.9975 becomes $4.00 after rounding up.
This concept ensures prices or financial data are expressed in standard currency format, making calculations easier and more consistent.
