With simple interest, interest is only paid at the end of a specified term. A term deposit is an example of an account that will earn simple interest not compound interest. If you invested $10,000 at 5% per year, you would earn $2,500 in simple interest after 5 years, $500 for each year.f you invested $10,000 at 5%, you would earn $2,834 in compound interest after 5 years, giving you a total of $12,834.