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In this lesson, the tutorial explains how to display formulas in an Excel spreadsheet. Initially, formulas are not visible but can be viewed by selecting a cell, which shows the formula at the top. The tutorial highlights examples of different formulas: addition, subtraction, and multiplication. To see all formulas on the spreadsheet, users can go to File, then Options, and navigate to Advanced. There, they should look for the option "Show formulas in cells instead of their calculated results" under the Display Options section and click OK. After this adjustment, all formulas in the cells become visible, including sum and average formulas.