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There are 3 values (1, 2, 3) for each of the 4 digits. Therefore, there are 3*3*3*3 or 81 four digit numbers that can be formed.

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Q: How many four digit numbers can be formed out of 123 if a digit can be repeated?
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How many four-digit numbers can be formed with the numbers 1234 if no digits can be repeated?

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