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In this video tutorial, you'll learn how to properly set up business letters in Microsoft Word. First, you'll change the top margin from 1 inch to 2 inches. To do this, navigate to the page layout, select margins, and click on custom margins. Enter '2' in the top margin field for a quicker adjustment and press OK. The cursor will then adjust to reflect the new margin. Next, you'll modify the font style, size, and spacing options, establishing a professional format before typing your letter.