Rounding to the Nearest Cent
Rounding to the nearest cent means rounding a decimal money amount to two places after the decimal point, since one cent equals $0.01. In Grade 6 Saxon Math Course 1 (Chapter 6: Geometry and Number Operations), students identify the hundredths digit (cents place), then look at the digit one position to its right: if it is 5 or more, round up (add 1 to the cents digit); if 4 or less, round down (keep the cents digit unchanged). For $12.345: the cents digit is 4, the next digit is 5, so round up to $12.35. This skill applies to tax calculations, shopping totals, and any money problem involving fractions of cents.
Key Concepts
Property Money amounts are usually rounded to two places after the decimal point.
Examples To round to the nearest cent, we look at the third decimal place: $0.5512 \rightarrow 0.55$ dollars, because 1 is less than 5. $6.6666 \rightarrow 6.67$ dollars, because 6 is greater than 5. $0.0833 \rightarrow 0.08$ dollars, because 3 is less than 5.
Explanation Think of it this way: you only have pennies, so any smaller fraction has to go! Just peek at the third decimal digit. If that digit is 5 or more, your cents round up to the next penny. If it's 4 or less, that tiny fraction of a cent just vanishes.
Common Questions
What does rounding to the nearest cent mean?
It means expressing a money amount with exactly two decimal places (hundredths), rounding based on the third decimal digit.
Round $7.836 to the nearest cent.
The cents digit is 3, and the next digit is 6 (≥5), so round up: $7.84.
Round $15.422 to the nearest cent.
The cents digit is 2, and the next digit is 2 (<5), so round down: $15.42.
Why do we round money to two decimal places?
The smallest coin in everyday use is one cent ($0.01), so money amounts beyond two decimal places cannot be paid exactly with standard currency.
How is rounding to the nearest cent the same as rounding to the nearest hundredth?
The cents place is the hundredths place. Rounding to the nearest cent and rounding to the nearest hundredth follow the same rule.