SOLUTION STEPS:
  1. To round to 2 decimal places, look at the thousandths digit.
  2. 1.503 has thousandths digit 3. Since 3 is less than 5, keep the hundredths digit (0) and drop the rest, giving 1.50.
  3. 1.50 is the same as 1.5. The distance is 1.5 km when rounded to 2 decimal places.