Amazon EC2 Reserved Instances Term for Maximum Savings

Answer Correct answer: C — The 3-year Reserved Instance term provides the maximum cost savings among available AWS EC2 RI options.

Which Amazon EC2 Reserved Instances term commitment will give users the MOST cost savings?

  1. 1 year
  2. 2 years
  3. 3 years Correct Answer
  4. 5 years

Community Votes

C
100%

100% of anonymous learners picked answer C. Votes are pick records left by other test-takers — they are not the verified answer.

Community Insight

The exam tests the specific duration limits of Reserved Instances; the trap is assuming longer terms like 5 years exist when only 1 and 3-year terms are supported.

This question tests knowledge of AWS pricing models, specifically the term lengths available for EC2 Reserved Instances. The correct answer is C because a 3-year commitment offers the highest discount among available options.

Users often select D (5 years) assuming that longer commitments always yield greater savings, not realizing AWS does not offer 5-year RI terms.

Community Discussion (5 comments)

ShaiTay 👍 1 Selected: C
C. 3 years
Yomijohnson 👍 2
Amazon EC2 Reserved Instances offer cost savings in exchange for a commitment to use EC2 capacity over a set term, with the 3-year term providing the highest savings compared to the 1-year option. AWS does not offer a 5-year term for Reserved Instances, so 3 years is the longest available and the most cost-effective option. Summary: A 3-year Reserved Instance term provides the greatest cost savings, making option C the correct answer.
Meow7 👍 1
c is correct. Please help with discussion on 565. Thanks.
tsangckl 👍 1
There have no 5 yers plan https://aws.amazon.com/ec2/pricing/reserved-instances/pricing/
Zerro 👍 1
Shouldn't it be D, 5 years?

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Expert Analysis

Why the Answer Is Correct

Amazon EC2 Reserved Instances provide significant cost savings compared to On-Demand pricing in exchange for a commitment to use specific capacity. AWS currently supports two term lengths: 1 year and 3 years. Among these, the 3-year term provides the deepest discount, offering the most cost savings.

Why the Other Options Are Wrong

Option A (1 year) provides savings but less than the 3-year option. Options B and D (2 years and 5 years) are incorrect because AWS does not offer Reserved Instance terms of 2 or 5 years. The available terms are strictly limited to 1 and 3 years.

Community Comment Notes

Community members correctly identified that 5-year terms do not exist, with one user noting 'There have no 5 yers plan'. Another commenter clarified that while 3 years is the longest available, it is not because 5 years was removed, but simply never offered as an option for standard RIs.

Official Reference

Exam Strategy

Memorize the specific service constraints and limitations for AWS offerings. For pricing questions, always verify if the 'longer is better' assumption applies to the actual product features, as some services have hard caps on term lengths or quantities.

Frequently Asked Questions

Does AWS offer 5-year Reserved Instances?

No, AWS EC2 Reserved Instances are only available in 1-year and 3-year terms. There is no 5-year option.

Why is 3 years better than 1 year?

A 3-year commitment requires a larger upfront obligation from the user, so AWS rewards this with a deeper discount per hour compared to the 1-year term.

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