With repetition allowed, number of $k$-length permutations: $n^k$
So total permutations for $k = 1$ to $r$ is:
\[
\sum_{k=1}^{r} n^k = n + n^2 + \cdots + n^r = \frac{n(n^r - 1)}{n - 1}
\]
But options suggest indexing from $k = 0$ to $r$: i.e.,
\[
n^1 + n^2 + \cdots + n^r = \frac{n(n^{r} - 1)}{n - 1} \quad \text{(Option 3)}
\]
However, question says “not more than $r$” and starts from 1 ⇒ correct is:
\[
\boxed{\frac{n(n^{r} - 1)}{n - 1}} \quad \text{[Typo in option marked, intended Option (3)]}
\]