Finding the number of 4-digit numbers less than 7000 that can be formed using digits 0, 5, 7, 1, 2, 6, and 8 (used only once) is similar to filling 4 vacant places with 7 different things with some constraints.
Constraint: For numbers less than 7000, the digit in the thousands place cannot be 7, 0, or 8.
So, there are 4 possibilities of filling the thousands place.
For remaining places, there are no constraints.
So, hundreds, tens, and units places can be filled in 6, 5, and 4 ways, respectively.
∴ Total number of 4-digit numbers less than 7000 that are formed are
4×6×5×4=480