Net Cash Flow in an Interest Rate Swap

In the context of interest rate swaps, consider a swap agreement where Party A agrees to pay a fixed interest rate of 4% annually on a notional amount of $1 million, while Party B pays a floating interest rate based on LIBOR, which is currently at 3.5%. Each payment is made at the end of the year for a total duration of 3 years.

At the end of the first year, the LIBOR rate has increased to 5%. What will be the net cash flow exchange between Party A and Party B for the first year?