CMA Foundation · Fundamentals of Business Mathematics and Statistics · Permutation and Combinations
A Mumbai firm assigns 4-letter codes to its cost centres using the letters of the word 'FUND' with no letter repeated. How many different codes can be formed?
The number of codes is 24, because four distinct letters are arranged in all positions without repetition, giving 4! = 4×3×2×1 = 24. The figure 256 would apply only if each letter could be reused in every position.
- A12
- B16
- C24Correct
- D256
Explanation
All 4 letters are distinct and all are used, so the number of arrangements is 4! = 24. The value 256 (4^4) wrongly allows repetition of letters, which the question forbids.
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