Is it 2.20? because if the square root is 2.23 then you’d find the value of the nearest hundredth?

When you round a number, you look at the size of the number before it. In this case, you are rounding the hundredths place, so you will look at the size of the thousandths place. 
The square root of 5 is approximately 2.236
You want to find the hundredths place, so you'll need to look at the thousandths place. 
The thousandths place is 6, which is more than 5, so you will round 2.236 up to 2.24

The square root of 5 to the nearest hundredth is 2.24

Hope this helps =)

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