Given :
96 rabbits produce 5% monthly
so, for the first month
the number of rabbits = 96 + 5% of 96 = 96 + 0.05 x 96 = 96 x 1.05
for the second month:
The number of rabbits = 96 x 1.05 + 5% of (96 x 1.05)
= 96 x 1.05 x ( 1 + 0.05)
= 96 x 1.05^2
so, for 7 months
the number of rabbits =
so, after 7 months, the number of rabbits = 135