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