An algorithm is a step by step method of solving a problem. It is commonly used for data processing, calculation and other related computer and mathematical operations.

An algorithm is also used to manipulate data in various ways, such as inserting a new data item, searching for a particular item or sorting an item. Technically, computers use algorithms to list the detailed instructions for carrying out an operation. For example, to compute an employee’s paycheck, the computer uses an algorithm. To accomplish this task, appropriate data must be entered into the system. In terms of efficiency, various algorithms are able to accomplish operations or problem solving easily and quickly.

Algorithms are widely used throughout all areas of IT (information technology).

The word algorithm derives from the name of the mathematician, Mohammed ibn-Musa al-Khwarizmi, who was part of the royal court in Baghdad and who lived from about 780 to 850. Al-Khwarizmi's work is the likely source for the word algebra as well.

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