So say we want to round 7423 up to 10,000. The amount you rounded up by is 2577. Below is the breakdown of the steps.
7 + 2 = 9
4 + 5 = 9
2 + 7 = 9
3 + 7 = 10
The first digits in the above addition 7,4,2,3 are the digits of the original number (7423).
The second digits in the above addition 2,5,7,7 is the amount you have rounded up by (2577).
If instead you want to round up to 8000 instead of 10,000 you dont do the first addition. (7+2 =9). So the amount you rounded up by will be 577 (the last three digits of 2577 when we rounded up to 10.000)
Please let me know if this clarifies.