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In this tutorial, you'll learn how to set up business letters in Microsoft Word. First, adjust the top margin from 1 inch to 2 inches. To do this, go to Page Layout, select Margins, and choose Custom Margins to enter 2 inches for the top margin, then press OK. You'll notice the cursor moves down, reflecting the new margin. Following this, the next step will be to change the font style, size, and spacing options before continuing with your letter formatting.