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This problem is asking how much to invest today in a fund to receive $328 per month for 5 years with an interest rate of 6.5%, compounded monthly. This can be solved using the formula for the present value of an annuity:

\[
PV = P \times \left( \frac{1 - (1 + \frac{r}{n})^{-nt}}{\frac{r}{n}} \right)
\]

Where:
- $PV$ is the present value (the amount to invest today),
- $P = 328$ is the monthly payment,
- $r = 0.065$ is the annual interest rate,
- $n = 12$ is the number of compounding periods per year (monthly compounding),
- $t = 5$ is the time in years.

Let me calculate the present value.The present value (amount you need to invest today) is approximately **$16,763.65**. Therefore, the correct answer is the first option, **$16,763.65**.

Would you like any further details or have additional questions?

Here are some related questions to deepen your understanding:
1. What is the difference between present value and future value in finance?
2. How does the frequency of compounding affect the total investment returns?
3. Can you solve a similar problem with a different interest rate or investment period?
4. What is the impact of increasing monthly contributions on the amount needed today?
5. How do you adjust the formula for continuous compounding?

**Tip**: The higher the compounding frequency (monthly, daily), the more the investment grows over time!

How much would you have to invest today to receive $328 per month for 5 years at 6.5% interest compounded monthly?

Learn how to calculate the present value needed to invest today to receive $328 per month for 5 years at 6.5% interest compounded monthly. This detailed solution uses the annuity and compound interest formulas, suitable for high school or early college students studying finance.

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