Reserved instances provide a significant discount (up to x%) compared to On-Demand pricing. What is x?

• A. 50%
• B. 75%
• C. 25%
• D. 90%

Answer: (B)

Reserved Instances provide substantial savings for steady‑state workloads by committing to a specific instance configuration for a long term. The biggest reductions come from Standard Reserved Instances with a 3-year term and upfront payment, which can cut the cost by up to 75% versus On-Demand. That’s why the maximum discount is 75%. If you choose shorter terms or different payment options, the discount will be smaller, not larger, which is why the other percentages don’t apply as the top savings.