A and B please

James Kinchen has a 1-year ARM for $140,000 over a 30-year term. The margin is 2% and the index rate starts out at 2.8% and increases to 5.0% at the first adjustment. The balance of principal at the end of the first year is $138,395.06. The ARM includes a periodic rate cap of 2% per adjustment period. Find (a) the interest owed and (b) the monthly payment due for the first month of the first year. (a) The interest owed is $ (Simplify your answer. Do not round until the final answer. Then round to the nearest cent as needed.)