Paul wants to store addresses and phone numbers for clients. Paul wants to use this information to send form letters. Paul should enter the addresses in a . spreadsheet
graphic software
database
word processor

Spreadsheet or database depending on how he's setting it up and what tools he's using.

The question makes it sound like Paul wants to store some arbitrary data and does not have any particular tool set up for it, so spreadsheet is probably the "correct" answer.

A database would be used more by developers to build a system that can be used to store such data (e.g. back end on a web site that takes the data).

you paid for the subscription lol