Answer / Rakesh Prasad

EC2 instances have three main pricing models: On-Demand, Reserved Instances (RIs), and Spot Instances. On-Demand provides immediate access to compute capacity with no long-term commitments. Reserved Instances provide significant discounts in exchange for a commitment to use EC2 instances for a fixed period of time or a total amount of usage. Spot Instances allow you to use spare Amazon EC2 computing capacity at up to a 90% discount compared to On-Demand pricing, with users specifying the maximum price they're willing to pay.

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