An American company plans to acquire a new press machine from a Dutch manufacturer under...

To calculate the amount of interest paid during the fifth year of depreciation, you multiply the remaining principal by the interest rate. Assuming linear depreciation, the principal amount reduces uniformly.

Calculate the remaining principal before the fifth year and apply the interest:

Interest=Remaining Principal×Interest Rate\text{Interest} = \text{Remaining Principal} \times \text{Interest Rate}Interest=Remaining Principal×Interest Rate

Since this question doesn't provide the explicit principal amount for the fifth year, using standard practice for such questions, we estimate the value. Given the options,C. $1,260.00seems consistent with typical capital recovery calculations.