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Prime numbers
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Prime numbers are those numbers which have only two factors – 1 and the number itself

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Example:
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2 has factors 1, 2

3 has factors 1, 3

5 has factors 1, 5

7 has factors 1, 7

∴ These numbers have only 2 factors

So, they are prime numbers

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Composite numbers
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Numbers which have more than 2 factors are composite numbers.

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Example:
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4 has factors 1, 2, 4

6 has factors 1, 2, 3, 6

8 has factors 1, 2, 4, 8

So, they are composite numbers