You hire an Employee for a week.
You decide to pay him 1/7th of a gold bar per day and the worker requires the payment at the end of the day.
How and when will cut the gold bar so that you have the fewest cuts on gold that will allow you to pay him 1/7th each day?
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Day One: You make your first cut at the 1/7th mark and give that to the worker.
Day Two: You cut 2/7ths and pay that to the worker and receive the original 1/7th in change.
Day three: You give the worker the 1/7th you received as change on the previous day.
Day four: You give the worker 4/7ths and he returns his 1/7th cut and his 2/7th cut as change.
Day Five: You give the worker back the 1/7th cut of gold.
Day Six: You give the worker the 2/7th cut and receive the 1/7th cut back in change.
Day Seven: You pay the worker his final 1/7th.
So you just make 2 cuts on Day 1 and Day 2.