Why should i take first five ones only? i could have taken first 4 also.
Why should i build N in terms of powers of 10.? that is the whole point i am asking in this doubt. Why we are taking zero to power of 10 and then multiplying with the digit of each place.
Here is one way to understand why we use positional notation, and why it works as it does.
I introduced the concept to my son using beans, cups, and trays. We put 10 beans in a cup, and 10 cups on a tray. So in counting, say, 247 beans, we could start filling a cup, and when it reached 10, put it on a tray and start a new cup. So every 10 beans made 1 cup. After the first 100 beans, we would have 10 full cups on a full tray, and would get out a new tray. Eventually, we would have 2 full trays, 4 extra full cups, and 7 more beans: 247. (Of course, we didn't actually do all this more than a couple times before finding quicker ways to count! Then we started adding numbers by combining cups.)
Do a base-ten numeral just states the counts of trays, cups, and beans (hundreds, tens, and ones) in a very compact, efficient way.
Why powers of ten? Because that's as far as you can count on your fingers, and because it's not too small and not too large. The number 34 can be shown as 3 pairs of hands and 4 more fingers. Even before base-ten positional notation was invented, names in many languages included special words for ten and hundred; positional notation just made it easier to write large numbers, by leaving out the words or special symbols for them.
Why use digits only up to 9? Because the next number is a "full cup", and we can start counting tens. We never need more than 9 of anything in this system. Again, to do otherwise would be more complicated and unnecessary.
Now, even the Romans with their complicated symbolic system understood place value: they used something like an abacus, where stones in one place (like beads on one wire) counted ones, those in the next counted tens, and so on. They just didn't get the idea that the value of a written symbol could be implied by its position, just as the value of a stone or bead could be.
I imagine it took Europeans some time to get used to the idea when place value was introduced (from India by way of the Middle East), but they soon saw its value, even if they didn't quite see why. And, of course, it was only later that it was commonly expressed in terms of powers of ten, as exponents hadn't quite been invented yet, and most people wouldn't understand 10^0. But that was all hidden in the concept.