Help with writing a formula from a word problem.

A finance company will lend you $1000 for a finance charge of $20 plus simple interest at 1% per month. This mean you will pay 1% of $1000, or $10 per month plus the $20 finance charge. Find a formula for F if F is the finance charge and M is the number of months before you repay the loan.

Isn't F already given as $20? How am I suppose to do this!?

Re: Help with writing a formula from a word problem.

i agree that is a badly worded question. are you sure you copied it exactly?

Re: Help with writing a formula from a word problem.

I suspect that "F" is to be the **total** finance charge- that is the total amount you pay above paying back the original $1000. Since you are paying $10 per month toward the $1000, it will take you 100 months to repay the loan. What is the **total** finance charge you will have paid in those 100 months?

(Notice that the monthly finance charge is **twice** your payment toward the loan!)