Final answer:
The formula to move a cash flow ahead 6 years at a 5% interest rate is d. FV = 800 (1+0.05)^6, which applies the Future Value compound interest calculation.
Step-by-step explanation:
The correct formula for moving a cash flow ahead 6 years in time at an interest rate of 5% is based on the Future Value compound interest calculation:
FV = Principal × (1 + interest rate)time
The student aims to find the future value of a cash flow of $800 after 6 years at an interest rate of 5%. Using the formula, the future value (FV) can be calculated as follows:
FV = 800 × (1 + 0.05)6
This is choice d. FV = 800 (1+0.05)6 in the question provided, which means the cash flow will be moved ahead 6 years and accrue interest at the 5% rate during this time period.