AIME 1997 Problem 5

The number $r$ can be expressed as a four-place decimal $0.abcd,$ where $a, b, c,$ and $d$ represent digits, any of which could be zero. It is desired to approximate $r$ by a fraction whose numerator is 1 or 2 and whose denominator is an integer. The closest such fraction to $r$ is $\frac 27.$ What is the number of possible values for $r$?