Preferred rate of return question?

[Charlotte Dunford]

If you were to pay your investors $8,000 in preferred rate of return of 8% on their $100k capital investment, the second year the capital account amount would be brought down to $92,000 right? The second's preferred return would be $92,000*8%=$7306, right?

What would happen if your investors choose to leave their money in, would the capital amount just go up?