There are seven positions to be filled.
The first position can be filled using any of the 7 letters contained in PROBLEM.
The second position can be filled by the remaining 6 letters as the letters should not repeat.
The third position can be filled by the remaining 5 letters only and so on.
Therefore, the total number of ways of rearranging the 7 letter word =
7*6*5*4*3*2*1 = 7! ways.