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In this Excel tutorial, the instructor demonstrates how to hide formulas in a worksheet. To begin, select the entire worksheet and navigate to Format Cells to uncheck the "Locked" option under the Protection tab, then click OK. Next, to select all cells containing formulas, use the Home tab, click on Find and Select, then Go To Special, and select Formulas. After confirming the selection, format these cells again through the Home tab by accessing Format Cells. This process ensures that when a cell with a formula is clicked, the formula will not be visible, helping to protect sensitive information in Excel spreadsheets.