Aside from the aforementioned LibreOffice there's also Google Docs and its collection of tools that will run in a web browser if you don't really need anything that complicated. It works pretty well and you don't even have to worry about document storage/backup since everything will get stored in the cloud on your Google account. Not installation needed, it just works(tm).
Pick one, LibreOffice is the most full featured, though IME it is frustrating when you want to do anything semi-complicated that needs those features (could be because I am used to word).
Very true, but calling LaTeX a "word processor" is kinda like calling MATLAB a "calculator". [ETA: Though to be fair to "word processors," MS Word itself is actually much more powerful than many people realize and most people have any conceivable use for. Even professional users, like in large law offices, typically use only a subset of all its capabilities...]
Don't forget Wordpad - it is free with Windows, and very adequate for basic tasks, letters, etc. Unless you are into desktop publishing, it can take care of most basic needs. In 7 and later versions, it is called Windows Write and the .exe file is located in \System32 folder of \Windows.
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