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Rounding in Electronic Spreadsheets For example, you decide to give 3 kids $10.00. You will have a conflict, for 2 kids receive equal amounts, $3.33; but one kid gets $3.34. Unless, of course, you pocket the extra penny...
A computer would calculate each person's share to be 3.3333333 (and so on). When totalled, a computer would yield 9.99999. That's a big problem if you are dealing with company financials.
Electronic spreadsheets include a ROUND function to accommodate for these scenarios. Using formatting or styles is not sufficient! You only need worry about this in a spreadsheet if you have division, percentages, averages, etc.
The ROUND function truly rounds the value or calculation to the number of decimals specified. Again, formatting does not do this.
ROUND(number_to_be_rounded,maximum_number_of_decimals)Consider the following point-of-sale (Canadian, eh) example.
| Excel | 1-2-3 or Quattro Pro | incorrect | |
| pre-tax amount | 29.95 in cell A1 | 29.95 in cell A1 | 29.95 |
| PST tax | =A1*8% | +A1*.08 | 2.396 |
| GST tax | =A1*7% | +A1*.07 | 2.0965 |
| amount tendered | =SUM(A1:A3) | @SUM(A1..A3) | 34.4425 |
| Excel | 1-2-3 or Quattro Pro | corrected | |
| pre-tax amount | 29.95 in cell A1 | 29.95 in cell A1 | 29.95 |
| PST tax | =ROUND(A1*8%,2) | @ROUND(A1*.08,2) | 2.4 |
| GST tax | =ROUND(A1*7%,2) | @ROUND(A1*.07,2) | 2.1 |
| amount tendered | =SUM(A1:A3) | @SUM(A1..A3) | 34.45 |
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