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Draw a picture. Since you are taking the margin off all four sides, you are removing it from both the height and length twice, so take 1.5 inches from both dimensions.

The answer is 7 x 9.5 inches

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Q: If you have 8.5 inches by 11 inch paper and you want to leave three fourth inch margin on all 4 sides what are the dimensions of the remaining area?
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