In the first hour, the balloon will increase in volume by two-fifths of 500cm³ which is (2/5)*500cm³ = <<2/5*500=200>>200cm³
After the first hour, it will have a volume of (500+200)cm³ = <<(500+200)=700>>700cm³
In the second hour, it will increase in volume by two-fifths of 700cm³ which is (2/5)*700cm³ = <<2/5*700=280>>280cm³
After the second hour, it's volume will be (700+280)cm³ = <<(700+280)=980>>980cm³
#### 980