Multivariable equation
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A bivariate equation.
An equation with more than one variable is called a multivariate equation.
literal equation
a formula
It helps to visualize the problem and to think better about the way(s) you're going to solve it. After you draw a picture, you place there the known information, and denote by a letter the unknown(s). Since you've organized everything on the picture, it's easier to relate things with each other by using the knowledge of geometry. For example, if the equation contains more than one variable, you can express the variable for which you want to solve the equation in terms of other variable(s) (the geometric formulas are very handy).