Which letter format uses indented paragraphs?

The format that employs indented paragraphs is the semi-block letter style. In this format, each paragraph begins with an indentation, which differentiates it from other letter styles. The semi-block format combines elements of both block and modified block styles, where the sender's address, date, closing, and signature are typically aligned to the right, while the paragraphs themselves are indented.

Understanding the characteristics of letter formats is crucial in communicating professionally. Other formats, such as full block, present all text aligned to the left without any indentations, while modified block letters also align the sender's information and closing to the right but do not indent paragraphs. An outline letter typically serves a different purpose, such as presenting structured information rather than following traditional correspondence styles. Thus, the semi-block letter format is distinct in its use of indented paragraphs, making it the correct choice in this context.