Step 1: Find the side of the rhombus.
Perimeter:
\[
40
\]
Since all sides are equal,
\[
\text{Side}
=
\frac{40}{4}
=
10
\]
m.
Step 2: Use diagonal properties of a rhombus.
Given one diagonal:
\[
d_1=16
\]
Half diagonal:
\[
\frac{16}{2}=8
\]
Let half of the other diagonal be \(x\).
The diagonals bisect each other at right angles.
Thus,
\[
10^2=8^2+x^2
\]
\[
100=64+x^2
\]
\[
x^2=36
\]
\[
x=6
\]
Hence,
\[
d_2=12
\]
Step 3: Find area.
\[
\text{Area}
=
\frac12 d_1d_2
\]
\[
=
\frac12(16)(12)
\]
\[
=96
\]
Therefore,
\[
\boxed{96}
\]