An employee works for an employer for 7 days. The employer has a gold rod of 7 units. How does the employer pay to the employee, so that the number of employee’s units increases by one at the end of each day. The employer can make at most 2 cuts in the rod.

**Solution:**

Employer can pay for seven days by making 2 cuts in a way that he has 3 rods of size 1, 2 and 4.

**1st Day:** Employer gives 1 unit cut.

**2nd day:** Takes back 1 unit cut from employee given on first day and gives 2 unit cut.

**3rd Day:** Gives 1 unit and then the employer is left with 4 unit rod lengths.

**4th Day:** Takes back cuts of 1 and 2 units. Gives the cut of 4 units.

**5th Day:** Gives cut of 1 unit.

**6th Day:** Takes back cut of 1 unit and gives cut of 2 units.

**7th Day:** Gives cut of 1 unit.

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