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In this video tutorial, you'll learn how to set up business letters in Microsoft Word. First, adjust the top margin from the default 1 inch to 2 inches. To do this, go to Page Layout, select Margins, and then choose Custom Margins. Here, input "2" for the top margin and click OK, which moves the cursor down accordingly. Next, you will change the font style, size, and spacing options. Further adjustments to these settings will enable a professional appearance for your business letters.