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Assume you have 6 spots shown below:

_ _ _ _ _ _

In the first spot, you have 6 letters to choose from. In the second spot, you have 5 letters to choose from because you already used one. Similarly, in the remaining spots, you will have 4, 3, 2, and 1 letters to choose from. So you have 6 choices * 5 choices * 4 choices * 3 choices * 2 choices * 1 choice = 720 possibilities

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