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Don’t use the private IP for your instance, that’s only useful if you’re accessing your instance from within EC2, instead use the public IP in your hosts file.
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You should use an elastic IP attached to the instance for a static, public IP address. You then place this in your host file. These are free as long as you have them attached to an active instance. If you terminate or stop the instance, you will be billed for it.
Source:stackexchange.com