You have a 512 mb card in the ram slot which gives you an effective ram of around 480 mb
it is random memory and is a storage space which the cpu uses to move data around while it does it's job
if you want to increase the ram then there should be a spare ram card slot next to the one you have so you can install another ram card of exactly the same value to double the ram memory
in some instances ( like game playing ) it can increase the speed of the computer
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