Definition. A permutation with repetition (or $r$-tuple or word) is an ordered selection of $r$ elements from a set of $n$ elements in which repetition is allowed.
By the Multiplication Principle, the number of words of length $r$ that can be formed with a set of $n$ elements is $n^r$ since we have $n$ choices for each of the $r$ times we make a choice.
Example. Consider the number of sequences of five letters we can form from the English alphabet if repetition is permitted. Since there are $26$ letters in the English alphabet, we have $26$ choices for each letter. This is our $n$. The number of times we choose a letter is $5$, which is our $r$. Thus, there are $26^5$ sequences of five letters of the English alphabet if repetition of letters is permitted.
Observe that $n$ is the number of choices, while $r$ represents the number of times you make that choice.
Andre Nicholas has pointed out in the comments and his solution that the number of ways that six different rings can be placed on four fingers is not a permutation with repetition (as I mistakenly thought) since the rings are not identical, so the order in which they are placed on the fingers matters.