Final answer:
The number of 4-letter words that can be formed using the letters 'N' and 'Y' is 16.
Step-by-step explanation:
To find the number of 4-letter words that can be formed using the letters 'N' and 'Y', we can use the concept of permutations. Since there are two choices for each position, we have 2 options for the first letter, 2 options for the second letter, 2 options for the third letter, and 2 options for the fourth letter. Therefore, the total number of 4-letter words is 2 x 2 x 2 x 2 = 16.