Answer: Lump- sum amount
Explanation: The lump sum amount refers to the final payment that an investor receives when his or her investment matures. This is sometimes also referred to as maturity payment or balloon payment.
In a lump sum amount, the benefit of the investment is paid to the investor at one go and not on basis of a series of cash flows.
Hence, we can conclude that $120,000 is a lump sum payment.
