Let us identify the different place values in the given number.
Starting from the left side, we have:
8 - ten's place
7 - one's place
decimal point
9 - tenth's place
4 - hundredths place
5 - thousandths place
3 - ten-thousandths place
2 - hundred-thousandths place
7 - millionth place
As we can see above, the number in the hundred-thousandths place is 2.
The number after 2 or the number in the millionth place is 7. Since the number in the millionth place is above 5, we will round up the hundred-thousandths place by adding 1. So, 87.945327 becomes 87.94533 when rounded to the hundred-thousandth place.