Calculating part in excel is easy we are providing you some example / sample sheets that will help you understand it much better even if you are new to it. First of all you have to find what do we mean by effective rate of interest, actually it is the total cost of borrowing there are various tuts available showing what this stuff means. If you are newbie to excel you can learn how to create your own spreadsheet and formula to use by pressing ctrl+` button.You can then copy paste it in new sheet and practice it.

Excel sample interest

This example sheet can be downloaded by clicking on the image given.