To determine the total amount of interest paid over the term of the loan, we need to calculate the total amount paid and subtract the original loan amount.

Given Information:

• Loan amount (Principal) = $23,000
• Annual Percentage Rate (APR) = 7%
• Loan term = 9 years
• Monthly payment = $287.64
• Number of compounding periods per year = 12 (monthly)

Steps:

1. Total number of payments: The total number of payments is the number of months in 9 years. $\text{Total payments} = 9 \times 12 = 108 \text{ months}$

2. Total amount paid over the term: Multiply the monthly payment by the total number of payments: $\text{Total amount paid} = 287.64 \times 108 = 31,073.12$

3. Total interest paid: Subtract the loan amount from the total amount paid: $\text{Total interest paid} = 31,073.12 - 23,000 = 8,073.12$

Conclusion:

The total interest paid over the term of the loan is $8,073.12. Since this value is not listed as an option, the correct answer is:

None of the above.

Would you like more details on the calculations or have any further questions?

Here are 5 related questions:

1. How does the APR affect the monthly payments on a loan?
2. What is the difference between simple interest and compound interest?
3. How can you calculate the monthly payment for a loan using the amortization formula?
4. What happens if you make extra payments on a loan each month?
5. How do loan terms (number of years) impact the total interest paid?

Tip: Longer loan terms may lower monthly payments, but increase the total interest paid over time.