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MS Word is a software for writing letters, reports, memos etc. It is reffered to as a "Word Processing program". MS Excel on the hand is called a "Spreadsheet Program". It offers a Worksheet kind of interface and can handle very complex calcuations. You can use it to build your Financial Statements, analysis etc.
One specifically relates to Calculations and Scientific solutions and other processes language and words.
Both have thier respective value in thier respective speciality.
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