We need to convert the number 67,854 (XX,XXX) to the form XX,000. We need to round it to the nearest thousand. The digit for the thousand is 7, so we move on to the digit on its right, which is 8.Now, if the next smallest digit is between 0-4, the digit we are looking to round remains the same. However, if the next smallest digit is between 5-9, we increase the digit to be rounded by one.In either case we then replace all digits to the right of the one being rounded (8,5,4) with zeros.In our case: the next smallest digit is 8, which is between 5-9. So 7 becomes 8. Finally, we get 68,000.