Collision-free mobile robot navigation is an important problem for many robotics applications, especially in cluttered environments. In such environments, obstacles can be static or dynamic. Dynamic obstacles can additionally be interactive, i.e. changing their behavior according to the behavior of other entities. The perception and prediction modules of robotic systems create probabilistic representations and predictions of such environments. In this paper, we propose a novel prediction representation for interactive behaviors of dynamic obstacles. Then, we propose a real-time trajectory planning algorithm that probabilistically avoids collisions against static and interactive dynamic obstacles, and produces dynamically feasible trajectories. During decision making, our planner simulates the interactive behavior of dynamic obstacles in response to the actions planning robot takes. We explicitly minimize collision probabilities against static and dynamic obstacles using a multi-objective search formulation. Then, we formulate a quadratic program to safely fit a smooth trajectory to the search result while attempting to preserve the collision probabilities computed during search. We evaluate our algorithm extensively in simulations to show its performance under different environments and configurations using 78000 randomly generated cases. We compare its performance to a state-of-the-art trajectory planning algorithm for static and dynamic obstacle avoidance using 4500 randomly generated cases. We show that our algorithm achieves up to 3.8x success rate using as low as 0.18x time the baseline uses. We implement our algorithm for physical quadrotors, and show its feasibility in the real world.