Depends on how many letters each word is and also how much punctuation was used.
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50 words. 5 characters equals one word, so 250 / 5 = 50
Bout 250
740
Words are considered to be 3-7 characters average. However, normally the 500 characters would include the space between words. Assuming an average for this is 5 characters per word, you could probably get 80-100 words into 500 characters, depending how "big" the words are that you use.
40 words. 5 characters per word in typing to figure words per minute rate.