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holly deposited $7,000 in a cd and will get charged penalties if she makes withdrawals within five years. however, she will need this money to pay for college tuition next year. what saving and investing principle should holly have followed?
a. understand your risk tolerance. b. diversify. c. keep investments simple. d. consider how long you plan to keep your money in the investment.

The investing principle Holly should have followed was:

D.Consider how long you plan to keep your money in the investment.

Explanation:

The reason behind the answer is that maybe she didn't know that she was going to be penalized when she made her investment. Also, she could have just believed she was not going to need te money and now she needs it. But it is really important to know this because it affects your profit. Therefore, knowing the time you are going to keep that money invested and maintain it there is a basic rule. It is said that you can only invest the money you are not going to need.

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