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Having numbers shown in particular ways. 3 is an unformatted number €3.00 is it formatted as currency. 300% is it formatted as percentage. You can have text formatted, by having it in different sizes or fonts or colours. Dates can be formatted in different ways, like having them just as numbers or as a mix of words and numbers:

5/3/15

5-Mar-2015

Things can be bolded or underlined or in italics. So there are lots of ways things can be formatted.

Formatting also includes the size and shape of cells, and the colours used.

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