Note: The same concept applies when using WinZip. Also, WinRAR can extract .zip files.
It seems there's always one or two people who doesn't know what to do with a .rar file o_O; Considering the amount of compressed files out there, you'd think it's common knowledge by now. Anyways ...
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Basically, to reduce the amount of downloading time, files are compressed to .rar files thus reducing its size. Think of it as packaging. When you receive a .rar file, basically, all you do is unpackage it.
Step 1: Download WinRAR
You can get it at http://www.rarlab.com/
Don't be scared of the 40 day trial period. It doesn't really matter because you can use still use the program past that 40 day limit.
The only difference is that you don't get an annoying pop-up reminder every time you open WinRAR.
Actually, if you follow the next step, you don't need to see that annoying pop-up.
Step 2: Right Click and Extract
Once downloaded, the .rar file should look something like a stack of books. Right click it as shown here:
Basically, you want to right click it and choose
Extract Here or
Extract to (file name goes here).
Extract Here basically extracts all the files in that .rar wherever the .rar file currently is; in my case, the desktop.
Be careful though, choosing this can be sometimes messy especially when dealing with .rar files that hold hundreds of individual files. How do you solve this, you ask?
Extract to (file name goes here) extracts all the files in that .rar in a folder and places that folder wherever the .rar file currently is; in my case, the desktop.