Terry invested $2,000 today in an investment that pays 6.5 percent annual interest. Which one of the following statements is correct, assuming all interest is reinvested?

a. terry will earn the same amount each year

b. terry will earn simple interest

c. terry will earn an increasing amount of interest each and every year

d. terry could have the same future value and invest less than $2000 initially if he could earn more than 6.5 percent interest.

e. terry's interest for year two will be equal to $2000