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Letter-writing encompasses two main types: formal and informal. Formal letters are written in a structured format for official purposes, while informal letters are more casual, intended for friends and family. Key components of a formal letter include the sender's address on the left side, the date, and the recipient's address. The letter serves various functions such as informing, requesting, suggesting, giving opinions, or responding to formal communications. It is important to follow the correct structure to effectively convey your message.