It requires two decimal places and as the third one is a 9, it will round the second digit up, to give 2.04 as the answer.
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How do you Round 0.387 to the nearest hundredth
1303.56 is at the nearest hundredth.
4.66 is at the nearest hundredth.
It is already to the nearest hundredth as 7.07
It is 0.27 rounded to the nearest hundredth