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Because it assumes that all the numbers you've been given are complete and exact (not missing decimal points). That being said, to maintain accuracy you should always give your answers in reduced fraction form, or keep Irrational Numbers (e.g. pi, e, sqrt 2) in their regular forms.

*The concept of significant figures relates to the precision of real-world measurements, where you cannot assume or assign greater precision as the result of a computation. Many math problems will arbitrarily assign a number of decimal places to which an answer is to be rounded.

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