during the installation process, i was asked to select a destination folder where the files will be extracted to.i don't have the slightest idea about what folder to use.
what are you trying install
for programs it should be installed in program files firectory
if you have a 64 bit it will be program files x86 folder for 32 bit apps
64 bit apps on a 64 bit os will install under program files directory
32bit os and 32 bit app install in program files directory
It sounds to me like it may have been an .exe or .zip file.
If that is the case, just use what that program selects to "extract" the files.
After that is finished, you will need to run the setup program to actually install the program.