Jessica invested $$2,000$ today in an investment that pays $6\mathrm{.}5$ percent annual interest. Which one of the following statements is correct, assuming all interest is reinvested?

Multiple Choice

Her interest for Year $2$ will be equal to $$2,000\mathrm{.}0652.$

She will earn the same amount of interest each year.

She will be earning simple interest.

She will earn an increasing amount of interest each year even if she should decide to withdraw the interest annually rather than reinvesting the interest.