The equation equivalent to the simple interest formula A = P(1 + rt), that Celo used is P = A/(1 + rt). Hence, the first option is the right choice.
Equivalent equations are the equations that are transformed from one equation to another equation, but the final values they give are equal. It's just the change of the variable on which the equation is derived.
The simple interest equation that Celo used is A = P(1 + rt).
This is currently used to find the final amount A.
On isolating P to one side of the equation in the following ways:
A = P(1 + rt),
or, A/(1 + rt) = {P(1 + rt)}/(1 + rt) {Dividing both sides by (1 + rt)}.
or, A/(1 + rt) = P {Simplifying}.
or, P = A/(1 + rt) {Changing sides}.
Thus, the equation equivalent to the simple interest formula A = P(1 + rt), that Celo used is P = A/(1 + rt). Hence, the first option is the right choice.
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