Floating Point Arithmetic Operations
The usual rule for performing floating point arithmetic is that the exact mathematical value is calculated, and the result is then rounded to the nearest representable value in the specified precision. This is in fact the behavior mandated for IEEE-compliant computer hardware, under normal rounding behavior and in the absence of exceptional conditions.
For ease of presentation and understanding, 7 digit precision will be used in the examples. The fundamental principles are the same in any precision.
Read more about this topic: Decimal Floating Point
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