Rounding
Rounding in business may seem straightforward at first glance, but it can be deceptively complex. The rules governing rounding are subject to interpretation, leading to variations in algorithms and results across different companies, services, and applications.
From Getpaid, we invest considerable effort in minimizing rounding errors, focusing on some crucial areas, such as, general number rounding, generating totals and calculating taxes.
General number rounding
General rounding refers to the mathematical process of adjusting numerical values to a specified level of precision or a particular place value. The purpose of general rounding is to simplify numbers for ease of interpretation, communication, or calculation. In general rounding, a number is modified to a nearby value that is easier to work with or more relevant in a given context.
The most common method of general rounding involves determining whether the digit in the next smaller place value is 5 or greater. If it is, the digit being rounded is increased by one; if not, the digit remains unchanged. This process is applied consistently across various numerical values, such as whole numbers, decimals, or percentages.
For example:
3.6751results3.68.3.6750results3.68.3.6749results3.67.