With most sequences at a high school level, you're being asked what basic operation (+/-/*/÷) is being used at each step, and that step is usually repeated.
In this case, we look at what the sequence is originally doing:
162, 54, 18, 6...
It's not subtraction, as the sequence is not the same each time (by extension, it is also not addition). So we see that the sequence is being divided by a term each time (also known as a geometric sequence). We establish this common ratio by dividing two sequential terms (terms that are next to one another).
I choose 18 and 6 in this case, as they are relatively small numbers. 6/18 reduces to 1/3 which is our common ratio.
With that in mind, I know my first time a1 = 162. I plug in each of these terms into the generic formula for a geometric sequence:
an = a1(r)(n-1)
Where an is our nth term, a1 is our first term and r is our common ratio.
an = 162(1/3)(n-1)
We then make the replacement for n to find our nth term, n being in this case 7 (7th term, nth term, see?)
a7 = 162(1/3)(7-1)
a7 = 162(1/729)
a7 = 2/9