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GCP free tier and credits - Mini Project: Build & Apply

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Understanding GCP Free Tier and Credits
๐Ÿ“– Scenario: You are starting to learn Google Cloud Platform (GCP). You want to understand how the free tier and credits work so you can try services without unexpected costs.
๐ŸŽฏ Goal: Build a simple GCP project setup that shows how to track free tier usage and apply credits to your billing account.
๐Ÿ“‹ What You'll Learn
Create a dictionary called free_tier_services with exact service names and their free tier limits
Add a variable called monthly_credits with the exact value of 300
Write a function called calculate_remaining_credits that takes used_credits and returns remaining credits
Add a final configuration dictionary called billing_info that includes free_tier_services, monthly_credits, and a sample used_credits value
๐Ÿ’ก Why This Matters
๐ŸŒ Real World
Cloud users and developers often track free tier limits and credits to avoid unexpected charges.
๐Ÿ’ผ Career
Understanding cloud billing basics is essential for cloud engineers, developers, and IT managers to optimize costs.
Progress0 / 4 steps
1
Create the free tier services dictionary
Create a dictionary called free_tier_services with these exact entries: 'Compute Engine': '1 f1-micro instance per month', 'Cloud Storage': '5 GB standard storage', 'BigQuery': '1 TB queries per month'
GCP
Hint

Use a Python dictionary with the exact keys and values given.

2
Add monthly credits variable
Add a variable called monthly_credits and set it to the integer 300 representing the $300 free credit amount.
GCP
Hint

Just assign the number 300 to the variable monthly_credits.

3
Write function to calculate remaining credits
Write a function called calculate_remaining_credits that takes one parameter used_credits and returns the remaining credits by subtracting used_credits from monthly_credits.
GCP
Hint

Define a function with one parameter and return the difference.

4
Create billing info dictionary
Create a dictionary called billing_info with keys 'free_tier_services', 'monthly_credits', and 'used_credits'. Set 'free_tier_services' to the free_tier_services dictionary, 'monthly_credits' to the monthly_credits variable, and 'used_credits' to the integer 120.
GCP
Hint

Use a dictionary with the exact keys and values as described.

Practice

(1/5)
1. What is the main difference between GCP's free tier and free credits?
easy
A. Free tier requires payment after 30 days; free credits never expire.
B. Free credits provide always-free resources; free tier is a one-time spending amount.
C. Both free tier and free credits are unlimited and always available.
D. Free tier provides always-free resources; free credits are one-time spending amounts.

Solution

  1. Step 1: Understand GCP free tier

    The free tier offers limited resources that are always free, such as small VM instances or storage, available indefinitely.
  2. Step 2: Understand GCP free credits

    Free credits are a one-time amount of money given to spend on any GCP service, usually for new users to try services without paying upfront.
  3. Final Answer:

    Free tier provides always-free resources; free credits are one-time spending amounts. -> Option D
  4. Quick Check:

    Free tier = always free, credits = one-time [OK]
Hint: Free tier is always free; credits are one-time money [OK]
Common Mistakes:
  • Confusing free credits as always free
  • Thinking free tier expires after 30 days
  • Believing free credits are unlimited
2. Which of the following is a valid GCP free tier resource?
easy
A. A 1 vCPU, 0.6 GB RAM VM instance running 720 hours per month
B. A 1 vCPU, 3.75 GB RAM VM instance running 24/7
C. A 4 vCPU, 15 GB RAM VM instance running 100 hours per month
D. A 2 vCPU, 8 GB RAM VM instance running 1000 hours per month

Solution

  1. Step 1: Recall GCP free tier VM limits

    The free tier includes an f1-micro VM instance with 0.6 GB RAM and 1 vCPU, available up to 720 hours per month (full month).
  2. Step 2: Compare options to free tier specs

    A 1 vCPU, 0.6 GB RAM VM instance running 720 hours per month matches the free tier VM specs exactly; others exceed CPU, RAM, or hours limits.
  3. Final Answer:

    A 1 vCPU, 0.6 GB RAM VM instance running 720 hours per month -> Option A
  4. Quick Check:

    Free tier VM = f1-micro 0.6GB, 720 hrs [OK]
Hint: Free tier VM is small: 0.6GB RAM, 1 vCPU, 720 hrs/month [OK]
Common Mistakes:
  • Choosing larger VM sizes thinking they are free
  • Ignoring the 720 hours monthly limit
  • Confusing vCPU counts
3. A new GCP user has $300 free credits valid for 90 days. They create a VM costing $0.05 per hour. How many hours can they run the VM before credits run out?
medium
A. 1500 hours
B. 3000 hours
C. 6000 hours
D. 9000 hours

Solution

  1. Step 1: Calculate total hours from credits and cost

    Divide total credits ($300) by hourly cost ($0.05): 300 / 0.05 = 6000 hours.
  2. Step 2: Check if hours fit within 90 days

    90 days x 24 hours = 2160 hours max usage in 90 days, so credits allow more hours than time limit.
  3. Final Answer:

    6000 hours -> Option C
  4. Quick Check:

    Credits รท cost/hr = hours [OK]
Hint: Divide credits by hourly cost for max hours [OK]
Common Mistakes:
  • Ignoring the hourly cost and dividing incorrectly
  • Confusing days with hours
  • Not considering credit expiration
4. A user tries to apply free credits after the 90-day expiration period. What will happen?
medium
A. The credits will still apply without any issue.
B. The credits will be rejected and cannot be used.
C. The credits will apply but only partially.
D. The credits will convert to free tier resources.

Solution

  1. Step 1: Understand credit expiration rules

    GCP free credits expire after the set period (usually 90 days) and cannot be used afterward.
  2. Step 2: Determine system behavior on expired credits

    Once expired, credits are rejected and cannot be applied to any service usage.
  3. Final Answer:

    The credits will be rejected and cannot be used. -> Option B
  4. Quick Check:

    Expired credits = rejected [OK]
Hint: Expired credits cannot be used [OK]
Common Mistakes:
  • Assuming credits auto-extend or convert
  • Thinking partial credit use is allowed after expiry
  • Confusing free tier with credits
5. A startup wants to use GCP free credits and free tier to run a small app continuously for 3 months. Which strategy best uses both to avoid charges?
hard
A. Run a free tier VM 24/7 and use free credits for extra storage and network usage.
B. Use free credits only for VM and ignore free tier resources.
C. Run multiple large VMs using free credits and free tier simultaneously.
D. Use free tier for all resources and save free credits for after 3 months.

Solution

  1. Step 1: Understand free tier and credits usage

    Free tier provides always-free small VM and limited resources; free credits can pay for extra usage beyond free tier limits.
  2. Step 2: Plan resource allocation

    Run the small app on free tier VM continuously to avoid charges, and use free credits for additional storage, network, or bigger VMs temporarily.
  3. Final Answer:

    Run a free tier VM 24/7 and use free credits for extra storage and network usage. -> Option A
  4. Quick Check:

    Combine free tier + credits smartly [OK]
Hint: Use free tier first, credits for extras [OK]
Common Mistakes:
  • Ignoring free tier and using credits only
  • Running large VMs exceeding free tier limits
  • Saving credits without using them effectively