Let us consider the following cases,
Case 1 : 7 is the First digit
7 __ __ __ __
Then, number of ways the remaining places could be filled =9⋅9⋅9⋅9
Case 2 : 7 is the second digit
__ 7 __ __ __
Then, number of ways the remaining places could be filled =8⋅9⋅9⋅9. (As 0 can not be the first digit)
Case 3 : 7 is the third digit
__ __ 7 __ __
Then, number of ways the remaining places could be filled =8⋅9⋅9⋅9 (As 0 can not be the first digit)
Case 4 : 7 is the fourth digit
__ __ __ 7 __
Then, number of ways the remaining places could be filled =8⋅9⋅9⋅9. (As 0 can not be the first digit)
Case 5 : 7 is the last digit
__ __ __ __ 7
Then, number of ways the remaining places could be filled =8⋅9⋅9⋅9. (As 0 can not be the first digit)
∴ The total number of such five digit numbers =9⋅9⋅9⋅9+8⋅9⋅9⋅9+8⋅9⋅9⋅9+8⋅9⋅9⋅9+8⋅9⋅9⋅9
Hence, option (A) is correct.