1. **State the problem:** Calculate the actual cash outflow for interest given the interest expense, beginning and ending interest payable. 2. **Formula used:** The relationship between interest expense, interest payable, and cash outflow is: $$\text{Interest Expense} = \text{Cash Outflow} + \Delta \text{Interest Payable}$$ where $$\Delta \text{Interest Payable} = \text{Beginning Interest Payable} - \text{Ending Interest Payable}$$ 3. **Calculate the change in interest payable:** $$\Delta \text{Interest Payable} = 400,000 - 150,000 = 250,000$$ 4. **Rearrange the formula to find cash outflow:** $$\text{Cash Outflow} = \text{Interest Expense} - \Delta \text{Interest Payable}$$ 5. **Substitute the values:** $$\text{Cash Outflow} = 1,500,000 - 250,000 = 1,250,000$$ 6. **Interpretation:** The actual cash paid for interest during the year is 1,250,000. **Final answer:** $$\boxed{1,250,000}$$