Answer
$I = 0.600~kg~m^2$
Work Step by Step
$\Delta K = \frac{1}{2}I\omega_2^2 - \frac{1}{2}I\omega_1^2$
$\frac{1}{2}I(\omega_2^2 - \omega_1^2) = -500~J$
$I = \frac{-1000~J}{(\omega_2^2 - \omega_1^2)}$
$I = \frac{-1000~J}{[(520~rev/min)(2\pi~rad/rev)(\frac{1~min}{60~s})]^2 - [(650~rev/min)(2\pi~rad/rev)(\frac{1~min}{60~s})]^2}$
$I = 0.600~kg~m^2$