Here are the steps to divide the address space as per the requirement:
1. Net 1 (500 hosts) - 9 bits (512 addresses) /23
2. Net 2 (200 hosts) - 8 bits (256 addresses) /24
3. Net 3 (100 hosts) - 7 bits (128 addresses) /25
4. Net 4 (60 hosts) - 6 bits (64 addresses) /26
5. Net 5 (20 hosts) - 5 bits (32 addresses) /27
6. Net 6 (2 hosts) - 2 bits (4 addresses) /30
7. Net 7 (2 hosts) - 2 bits (4 addresses) /30