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Zach demonstrates how to save a Word document on a computer for school organization. He shows how to access the "save as" option by going to the file menu or using the shortcut Ctrl + S. Zach creates a new folder in the documents folder called "school 2014" and saves the document in it. By saving the document, it can be closed without losing any information. The saved document can be found in the Explorer window under the "school 2014" folder.