As I stated "Each available choice is double the cost of the previous one". 
 That is exponential.  Am I missing something here??

e.g. 2^n where i is the index of the instance choice (0,1,2,...)

therefore

cost =  2^n * .08

Based on that, if an F8 were to be available, a 1024MB instance would be 
2^3 *.08 = .64/hr

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