1. **State the problem:** Reduce the fraction $\frac{10}{16}$ to its simplest form. 2. **Formula and rules:** To simplify a fraction, divide the numerator and denominator by their greatest common divisor (GCD). 3. **Find the GCD:** The factors of 10 are 1, 2, 5, 10. The factors of 16 are 1, 2, 4, 8, 16. The greatest common factor is 2. 4. **Divide numerator and denominator by the GCD:** $$\frac{10}{16} = \frac{\cancel{2} \times 5}{\cancel{2} \times 8}$$ 5. **Simplify the fraction:** $$= \frac{5}{8}$$ 6. **Final answer:** The fraction $\frac{10}{16}$ simplified is $\frac{5}{8}$.