Answer
The main difference is that in a permutation, the order or sequence matters, while in a combination, the order does not matter.
Work Step by Step
We know that a permutation is an arrangement of items in order. It occurs when no item is used more than once, and also the arrangement of the order makes a difference.
${}_{n}{{P}_{r}}=\frac{n!}{\left( n-r \right)!}$
And a combination of items occurs when the selection is made from the same group and no item is used more than one time; also, the order makes no difference.
${}_{n}{{C}_{r}}=\frac{n!}{r!\left( n-r \right)!}$
Let us consider an example: if someone has to select 4 people from a group of 10. In this case, combination is used to determine the number of ways to select 4 people.
Also, consider an example: if someone has to find a 5-letter password such that there is no repetition in the letters. Thus, in this case, a permutation is used as no letter is repeated.
