$10times0.096=0.96textUSDperhourNext,wecalculatetheannualcost:0.96textUSD/hourtimes24texthours/daytimes365textdays/year=8,409.6textUSDWitha408,409.6textUSDtimes(1−0.40)=5,045.76textUSDNow,multiplyingthisbythenumberofinstancesgives:5,045.76textUSDtimes10=50,457.6textUSDHowever,sincethisisforoneinstance,weneedtomultiplybythenumberofhoursinayear(8,760hours):0.96textUSD/hourtimes8,760texthours=8,409.6textUSDNow,applyingthe408,409.6textUSDtimes0.60=5,045.76textUSDFortheComputeSavingsPlan,thecompanycommitstoaminimumspendof500 per month. Over a year, this amounts to: $500textUSD/monthtimes12textmonths=6,000textUSDHowever,witha308,409.6textUSDtimes(1−0.30)=5,886.72textUSDSincetheminimumcommitmentof6,000 is higher than the discounted cost, the company will pay 6,000fortheSavingsPlan.Insummary,thetotalcostfortheyearwithReservedInstancesis50,457.6, while the total cost with the Compute Savings Plan is $6,000. Thus, the correct answer reflects the total costs associated with each option, demonstrating the financial implications of choosing between Reserved Instances and Savings Plans based on workload and commitment levels.