Answer
Your PV increases,
so then should the interest paid.
Work Step by Step
With simple interest,
$INT=PVrt,$
since both PV and r are constant, for each change in t of 1 (year), the interest added to your account is equal (constant).
However, after one period (t=1 year), the interest is added to your account,
so
your PV is greater than for the period before, and
for the next period of t=1, the interest should be based on the new PV,
meaning that you should be paid more interest than for the period before.
