Net Cash Flow Obligation of Party A in Interest Rate Swap

Maria is evaluating a plain vanilla interest rate swap where Party A has agreed to pay a fixed interest rate of 3% annually on a notional amount of $10 million for 5 years, while Party B pays a variable rate based on LIBOR, which is currently at 3.5%. The swap is brokered through a financial institution and no collateral is exchanged. Maria wants to determine the net cash flow obligations of each party for the first year of the swap, assuming LIBOR remains unchanged for that entire year.

What is the net cash flow obligation for Party A in the first year?