Identify Thousandth Place: To round 0.765 to the nearest hundredth, we need to look at the thousandth place, which is 5 in this case. Since the digit in the thousandth place is 5 or more, we round up the digit in the hundredth place by 1. The hundredth place currently has a 6, so when we round up, it becomes 7.
Round Up Hundredth Place: After rounding up, the number becomes 0.77 because the digit after the hundredth place (which was 5) is dropped after rounding.