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In the decimal number system, 12.375 = 1*10^1 + 2*10^0 + 3*10^(-1) + 7*10^(-2) + 5*10^(-3). This is equal to 10 + 2 + 0.3 +0.07 + 0.005. The powers of 10 shift left in order to count in ones, tens, hundreds, and so on. The powers of 10 shift right to count in 1/10, 1/100, 1/1000, and so on.
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