The formula for combinations is a modification of the formula for permutations.
The permutation formula: nPr = n! / (n - r)!
With permutations, order is important; with combinations, order is not important.
With permutations, these sets of three letters are different: ABC, ACB, BAC, BCA, CAB, CBA.
With combinations, these sets are not different, because their order is not important.
So these 6 sets in a permutation create only 1 set in a combination.
Thus, you have to divide the answer in the permutation by the number of ways that the selected letters can be arranged.
The number of ways that r elements can be arranged is r!.
So divide the permutation answer by r! to get the combinations answer: nCr = n! / [ (n - r)! · r! ]