You look at the third decimal place to see what effect it would have on the second one. As in this case it is a 4, it will have no effect and 325.17 will be the answer.
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It means to round a decimal number to its nearest hundredth place as for example 2.125 rounded to 2 decimal places is 2.13
It is 0.86 when rounded to 2 decimal places
0.275 rounded to 2 decimal places is 0.28.
It is already rounded to 2 decimal places since there are no decimals in this number.