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The area in an Excel window that allows entering values and formulas is (3) the Formula bar. The Formula bar is located just below the menu bar and typically spans across the width of the Excel window. It displays the contents of the currently selected cell, allowing you to enter or edit values and formulas. When you select a cell, the contents of that cell are shown in the Formula bar, whether it’s a numeric value, text, or a formula. You can directly type or edit the desired value or formula in the Formula bar and press Enter to apply it to the selected cell.