Final answer:
To determine the amount in the investment account after 12 years, you first need to calculate the compound annual growth rate that results in a fivefold increase after 25 years. Then, use this rate to calculate the future value after 12 years using the compound interest formula. A numeric answer can't be provided without the actual rate or initial investment.
Step-by-step explanation:
To calculate how much money you will have in your investment account after 12 years, given that the investment will increase fivefold over 25 years, you can use the formula for compound interest. Since we're not given an explicit interest rate, we'll need to start with the idea that the final value (FV) after 25 years is equal to five times the initial investment (PV), so FV = PV * 5. To find the compound annual growth rate (CAGR), we can use the formula FV = PV * (1 + r)^t, where 'r' is the rate and 't' is the time in years. Rearranging this formula to solve for 'r' when t is 25 years will give us the growth rate that results in a fivefold increase.
Once we have 'r', we can then apply it to the 12-year period. With the new 't' value of 12 years, we recalculate to find the future value after 12 years using the original formula with our specific rate substituted in.
Without the actual rate or initial investment value, we cannot provide a numeric answer, but this is the process you would use to find out how much money you will have after 12 years, based on compounding interest.