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In this Microsoft Word tutorial, the presenter shows us how to use formulas in Word for simple calculations, such as adding up invoices or tables. They demonstrate adding up columns, rows, and other sums by selecting a cell, going to the layout tab, and clicking on the formula option. Word automatically understands to add up all numbers to the left of the selected cell. Total calculations can be placed at the beginning, end of rows, or at the bottom of columns for easy reference.