Final answer:
Mr. Hooper has signed a (A) graduated lease, which means that his rent will increase at predetermined intervals over the span of the 4-year lease.
Step-by-step explanation:
Mr. Hooper has signed a graduated lease. A graduated lease is a rental agreement for property whereby the rent increases over time. This is often done at predetermined intervals and the increases are outlined in the lease agreement from the start. The predetermined rent increases are a way for landlords to protect against inflation or to escalate their income over time as property values and living costs increase.
In contrast, a net lease involves a tenant paying not only rent but also some or all of the property expenses, such as taxes, insurance, and maintenance. A percentage lease is commonly used in retail and involves the tenant paying a base rent plus a percentage of their revenue. Lastly, a gross lease is one where the tenant pays a flat rent amount, and the landlord covers all property expenses.