parabellum, I think it works out at about £8 per month for Office365.
You can store documents in a 'cloud' if you wish, or just keep them on the computer. Neither do you need to be on-line to use it, although it makes sense to do so every so often, in order to receive the free upgrades.
I'm quite happy with Office 2007 on this laptop, but the equivalent 2016 version costs nearly £200.