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376 will be the right answer.

The Most Significant Digit(or leftmost digit) can not be 0, other wise resultant number will become less than 999.

For example: 0432, 0111 etc.


Also if the Most Significant Digit is 4, then rest all the digits at other position must be 0, otherwise the resultant number will become greater than 4000.

For example : 4111, 4001 etc


If the Most Significant Digit is any one of the 1, 2 & 3, then there is no restrictions  for the digits in other places.

So 

Suppose the 4 digit number looks like @&&& where @ is the Most Significant Bit then,

1) When @ = 0 , we will have no choices for &'s.

2) When @ = 1 or 2 or 3, we will have all the five choices for each "&" in &&&, so for the numbers of type "1&&&" we will have 125 (= 5x5x5) choices, eg 1123, 1420 etc.Similarly for the numbers of type "2&&&" and "3&&&" we will have 125 and 125 choices respectively, so we have total 375(=125 + 125 + 125) choices if leftmost digit is a 1, or a 2 or a 3.

3) Finally when @  = 4, all the &'s must be 0 in order to make 4000, so here we have only 1 choice.

So we have total 376(= 0 + (3 x 125) + 1) choices / numbers.

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