What is the greatest power of $2$ that is a factor of $10^{1002} - 4^{501}$?
First, we can write the expression in a more primitive form which will allow us to start factoring. \[10^{1002} - 4^{501} = 2^{1002} \cdot 5^{1002} - 2^{1002}\] Now, we can factor out $2^{1002}$. This leaves us with $5^{1002} - 1$. Call this number $N$. Thus, our final answer will be $2^{1002+k}$, where $k$ is the largest power of $2$ that divides $N$. Now we can consider $N \pmod{16}$, since $k \le 4$ by the answer choices. Note that \begin{align} 5^1 &\equiv 5 \pmod{16} \\ 5^2 &\equiv 9 \pmod{16} \\ 5^3 &\equiv 13 \pmod{16} \\ 5^4 &\equiv 1 \pmod{16} \\ 5^5 &\equiv 5 \pmod{16} \\ &\: \: \qquad \vdots \end{align} The powers of $5$ cycle in $\mod{16}$ with a period of $4$. Thus, \[5^{1002} \equiv 5^2 \equiv 9 \pmod{16} \implies 5^{1002} - 1 \equiv 8 \pmod{16}\] This means that $N$ is divisible by $8= 2^3$ but not $16 = 2^4$, so $k = 3$ and our answer is $2^{1002 + 3} =\fbox{2^{1005}}$.