Borrowing from dsaqwert,
it can be written as 49*2401^1998 = 49 *(2400+1)^1998.
NOw, as only the last 3 digits are relevent to us .. 2400^2 and greater powers do not add value as 2400^2, itself has the last 4 digits are zero.
So, for the required 3 digits, we need only the last 2 terms of the expansion
i.e 49 [1998c1*2400+1] = 49*1998*2400+49 = ..800+49=..849.