would I set up this problem and work it this way?

(x5) ^8 =16

I don't know. What is the problem? You seem to understand that ^8 means "to the 8th power" but in that case, I am a bit confused on the (x5) part.

If (x5)^8 = 16 then
(x5) = 16^(1/8) = (2^4)^(1/8) = 2^(1/2) = √2

Maybe you can work it out from there.