How in the world did you get that!!
There are: 4 numbers to choose from for the 1st digit from the left. Any number beginning with 5 is not allowed, because that number would be over 500!!
There are: 5 numbers to choose from for the 2nd digit from the left.
There are: 2 numbers to choose from for the 3rd and last digit.
So, that is: 4 x 5 x 2 =40 numbers in total.
Here are ALL the permutations possible:
{1, 1, 1} | {1, 1, 2} | {1, 1, 3} | {1, 1, 4} | {1, 1, 5} | {1, 2, 1} | {1, 2, 2} | {1, 2, 3} | {1, 2, 4} | {1, 2, 5} | {1, 3, 1} | {1, 3, 2} | {1, 3, 3} | {1, 3, 4} | {1, 3, 5} | {1, 4, 1} | {1, 4, 2} | {1, 4, 3} | {1, 4, 4} | {1, 4, 5} | {1, 5, 1} | {1, 5, 2} | {1, 5, 3} | {1, 5, 4} | {1, 5, 5} | {2, 1, 1} | {2, 1, 2} | {2, 1, 3} | {2, 1, 4} | {2, 1, 5} | {2, 2, 1} | {2, 2, 2} | {2, 2, 3} | {2, 2, 4} | {2, 2, 5} | {2, 3, 1} | {2, 3, 2} | {2, 3, 3} | {2, 3, 4} | {2, 3, 5} | {2, 4, 1} | {2, 4, 2} | {2, 4, 3} | {2, 4, 4} | {2, 4, 5} | {2, 5, 1} | {2, 5, 2} | {2, 5, 3} | {2, 5, 4} | {2, 5, 5} | {3, 1, 1} | {3, 1, 2} | {3, 1, 3} | {3, 1, 4} | {3, 1, 5} | {3, 2, 1} | {3, 2, 2} | {3, 2, 3} | {3, 2, 4} | {3, 2, 5} | {3, 3, 1} | {3, 3, 2} | {3, 3, 3} | {3, 3, 4} | {3, 3, 5} | {3, 4, 1} | {3, 4, 2} | {3, 4, 3} | {3, 4, 4} | {3, 4, 5} | {3, 5, 1} | {3, 5, 2} | {3, 5, 3} | {3, 5, 4} | {3, 5, 5} | {4, 1, 1} | {4, 1, 2} | {4, 1, 3} | {4, 1, 4} | {4, 1, 5} | {4, 2, 1} | {4, 2, 2} | {4, 2, 3} | {4, 2, 4} | {4, 2, 5} | {4, 3, 1} | {4, 3, 2} | {4, 3, 3} | {4, 3, 4} | {4, 3, 5} | {4, 4, 1} | {4, 4, 2} | {4, 4, 3} | {4, 4, 4} | {4, 4, 5} | {4, 5, 1} | {4, 5, 2} | {4, 5, 3} | {4, 5, 4} | {4, 5, 5} |. These are ALL the permutations with repeats under 500. If you count the bold ones you should get 40.