Answer
The balloon will burst.
Work Step by Step
$P_1V_1=P_2V_2$
$760\text{ mmHg}*2.0\text{ L}=500.\text{ mmHg}*V_2
\Rightarrow V_2=3.04 \text{ L}$
$3.04\text{ L}>2.50 \text{ L}$. Therefore, the balloon will burst.
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