Page 16 - BUSINESS MATHEMATICS MODULE 1 (WHOLE)_revised 10.20.2020
P. 16
WALKTHROUGH
B. Rounding-Off Numbers
The practice of business involves the use of numbers both in small and large quantities.
These numerical data could be the result of counting or measuring.
If numerical data is the result of counting distinct objects such as the number of people,
number of companies, etc., these data are called exact data. Here there is no problem with precision
and accuracy.
In buying or selling, or in any form of business practice, we may encounter figures which
run in millions or billions. Approximations are easier remembered than exact figures. Final figures
are conveniently handled when they are rounded off. For convenience, final results in cases of
money are rounded off to the nearest centavo.
Dropping off certain digits to the right of a given number and, in some cases, replacing
the lost places by the necessary zeros, constitute the rounding off process. Here are the specific
rules for rounding-off numbers.
1. When the digits to be eliminated or replaced by 0 are less than 5, 50, and so forth, do not
change the value of the last digit to be retained.
Original Number Rounded Number
453.7931 453.79 (rounded off to the nearest hundredth)
62.437 62 (rounded off to the nearest tens)
2. When the digits to be eliminated or replaced by 0 are greater than 5, 50, 500, and so forth,
add the 1 to the last digit to be retained.
Original Number Rounded Number
₱ 735.427 ₱ 735.43 (rounded off to the nearest hundredth)
65.53 66 (rounded off to the nearest tens)
3. When the digits to be eliminated or replaced by 0 are exactly 5, 50, 500, and so forth, do
not change the last digit to be retained if it is even; add 1 if it is odd. This is known as the
Odd-even rule.
Original Number Rounded Number
₱ 54.50 ₱ 54 (rounded off to the nearest peso)
367.275 367.28 (rounded off to the nearest hundredth)
8,366 8,360 (rounded off to the nearest tens)
Page | 1.4 BUSINESS MATHEMATICS: Module 1
Source: Business Mathematics by Cristobal M. Pagoso
