The reservation fee for a small instance is $227.50 annually (http://aws.amazon.com/ec2/pricing/) but you still pay an hourly rate to run it, albeit a lower rate than for a non-reserved instance. Running a small reserved instance for a year costs $227.50 + ($0.03 x 24 x 365) => $490.3/year or $40.86/month. (This is in the US East region.)
The reservation fee for a small instance is $227.50 annually (http://aws.amazon.com/ec2/pricing/) but you still pay an hourly rate to run it, albeit a lower rate than for a non-reserved instance. Running a small reserved instance for a year costs $227.50 + ($0.03 x 24 x 365) => $490.3/year or $40.86/month. (This is in the US East region.)