Identify Given Parameters

Note down the lengths of both diagonals provided in the question: $d_1 = 16 \text{ cm}$ and $d_2 = 12 \text{ cm}$.

$d_1 = 16 \text{ cm}, \quad d_2 = 12 \text{ cm}$

Apply Area Formula

Use the standard formula for the area of a rhombus when diagonals are known: $\text{Area} = \frac{1}{2} \times d_1 \times d_2$.

$\text{Area} = \frac{1}{2} \times d_1 \times d_2$

Calculate the Area

Substitute the values into the formula and simplify: $\frac{1}{2} \times 16 \times 12 = 8 \times 12 = 96 \text{ cm}^2$.

$\text{Area} = 96 \text{ cm}^2$