Rounding to the nearest hundredth is simply rounding to the hundredths place (the second number after the decimal point). The number in the hundredths place here is the 2, and the number after that, 0 (in the thousandths place) rounds down to 0 (mostly because it is 0) and leaves us with 1.12. Any number less than 5 rounds down to 0, 5 and up round to 10. If it had been 1.125, we'd have rounded it to 1.13.
