Definition
A permutation is a 1-1 correspondence of a set V onto itself: f: V
V.

Being able to count elements in the set V means the set can be written as {v1,v2,...,vn}.
However, a set may be counted in many different ways. For example, a set of two elements can be counted in exactly two ways. The first element
first and the second second or the first element second and the second first.
A permutation is a way of counting elements in a set. What was {v1, v2, ..., vn} for one counting is {vi1, vi2, ..., vin} for another. In other words, a permutation is a way of reindexing a set. Most often for the sake of convenience, when discussing permutations, indices is all that's considered and the symbol v for the set's element is omitted. This makes sense too. For then we just talk of permutations of the (index) set {1, 2, 3, ..., n}.
In how many ways may one count a set of n elements? Or, which is the same, how many permutations are there of (a set of ) n elements?
Definition
The number of permutations of a set of n elements is denoted n! (pronounced n factorial.)

Thus n! is the number of ways to count a set of n elements. As we saw, 2! = 2. Obviously, 1! = 1, 3! = 6. Indeed, there are just six ways to count three elements:
I placed the answer to the question at the bottom of this page.
What's 4!? There are 4 ways to select the first element. There remain only three candidates for the second position and, after this was selected, only two candidates for the third position. The remaining element
automatically goes to the fourth place. Therefore, 4! = 4·3·2. Similarly, 5! = 5·4·3·2 = 5·4!.
Here is another way to do this. Look at the six permutations of a 3-element set. Let's try
mimicking this for a set of n elements. There are n ways to select the first element. For each of these, by definition, the remaining (n-1) elements can be counted in (n-1)! ways. Therefore, there are n·(n-1)! ways to count an n-element set.