They are used in place of an unknown number or value.
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Letters used in math are called variables.
There are used to encapsulate a relationship between two or more variables.
Variables may be used for a number of different purposes. They may be used to generalise mathematical statements or to model a system of equations to solve.
If you don't know something in a math equation you can replace it with a variable and then solve it algebraically.
A and C are both variables.