Rounding a number means approximating it. A rounded number is often easier to use, understand, and remember than the precise number. In MyFinanceLab most of our answers are rounded decimal numbers. A decimal number has three parts: The whole number part, the decimal point and the decimal part.
For example: [pic]
So, in order to round a decimal number we basically round the decimal part of it.
These are the two basic steps for rounding decimals to a place value to the right of the decimal point
Step 1: Locate the digit to the right of the given place value.
Step 2: If this digit is 5 or greater, add 1 to the digit in the given place value and delete all digits to its right. If this digit is less than 5, delete all digits to the right of the given place value.
For example: Round 736.2359 to the nearest hundredth.
Step 1: We locate the digit to the right of the hundredths place
Step 2: Since the digit to the right is 5, we add 1 to the digit in the hundredths place and delete all digits to the right of the hundredths place.
Thus, 736.2359 rounded to the nearest hundredth is 736.24
Rounding in MyFinanceLab
In MyFinanceLab we use input instructions to indicate the place value to which you must round your final answer(s).
For example: Let’s say your final answer is 736.2359. • You must enter 736.2 if the input instruction is: Round to the nearest tenth. • You must enter 736.24 if the input instruction is: Round to the nearest hundredth. Note: Other typical input instruction in MyFinanceLab is Round to the nearest cent if the final answer is in currency units. • You should enter 736.236 if the input instruction is: Round to three decimal places.
Now, let’s use a simple Time Value of Money (TVM) question you may encounter in MyFinanceLab.