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In this Microsoft Word tutorial, the instructor explains how to use formulas for simple calculations directly within Word. The video highlights the utility of these formulas when dealing with invoices, tables, or basic accounting tasks. The presenter demonstrates how to add totals at the beginning and end of rows, as well as at the bottom of columns. To initiate a sum, users can click in the desired cell, navigate to the 'Layout' tab, and select 'Formula,' prompting a dialog box. Word automatically suggests summing the numbers to the left of the selected cell. The tutorial aims to simplify the process of performing calculations without needing to switch to Excel.