Concept:Interest on capital is calculated on each partner’s capital balance at the agreed rate.Explanation:Teteh’s capital balance is #300,000.The interest rate on capital is 5% per annum.The profit-sharing ratio does not affect the calculation of interest on capital.Interest on Teteh’s capital: 5%×#300,000=1005×300,000=#15,000Answer:Teteh’s interest on capital is #15,000, which is option A.