The name isn't important. As long as it's clear what its purpose is, it's fine.
Yes, you'd have an abstract modifier on the method as well as a modifier on the class:
public abstract class SomeClass{
}
The format method in the NumberFormat class returns a String, so if you wanted to return a formatted String, profit would need a String return type. I would suggest your second option of returning a double and formatting it in the driver.
Sarah