The general issue is not limited to Fortran, but the representation of base 10 real numbers in another base of finite precision. This computer science question is asked many times here.
For the specifically Fortran aspects, the declaration "real" will likely give you a single precision floating point. As will expressing a constant as "23.234" without a type qualifier. The constant "100000" without a decimal point is an integer so the expression "y * 100000" is causing an implicit conversion of an integer to a real because "y" is a real variable.
For previous some previous discussions of these issues see Extended double precision , Fortran: integer*4 vs integer(4) vs integer(kind=4) and Is There a Better Double-Precision Assignment in Fortran 90?