Step 1: Understanding the Concept:
The number of ways to arrange $n$ distinct objects is given by $n!$ (n factorial). This is a basic permutation problem where all items are unique.
Step 2: Key Formula or Approach:
Number of arrangements = $n!$, where $n$ is the number of letters.
Step 3: Detailed Explanation:
1. Count the number of letters in the word 'PEANUT'.
2. The letters are P, E, A, N, U, T. There are 6 letters.
3. Check for repetitions: All letters are distinct (unique).
4. Total arrangements = $6!$.
\[ 6! = 6 \times 5 \times 4 \times 3 \times 2 \times 1 \]
\[ 6! = 720. \]
Step 4: Final Answer:
The letters can be arranged in 720 ways.