First, you need to know to take 16% of something, you multiply it by .16. - So with that said...
Let's say p was the price last year.
p + .16 x p = 1.60
combine like terms
1.16 p = 1.60
divide both sides by 1.16
p = 1.60 / 1.16 = 1.38
The price last year was 1.38