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Algebra helps solve problems with unknown values by using letters to represent them in equations. For example, 5 + a = 8 shows that the unknown value is represented by "a". Equations have two parts with an equal sign in between. In a scenario with ripe and unripe apples on a tree, if the farmer picked 15 ripe apples from the first branch and 8 were left, the total number of apples on the branch was 23.