After a 12% increase, a price is £196.00. What was the original price?

The given value already includes the change, so divide by (1 + rate) — don't subtract the percentage from it. The correct answer is £175.00. Traps to avoid: £219.52 comes from the "increased again" error; £178.18 comes from the "wrong rate" error; £167.52 comes from the "wrong rate" error; £172.48 comes from the "forward not reverse" error.