When you draw an illustration for this problem, you would come up with the same drawing as shown in the picture. As the hot-air balloon travels upwards, there is a slight time when the bag of sand rises up until it reaches the maximum height. Then, it goes back down to the ground. The total time would be t₁ + t₂. The solution is as follows:
H = v₀²/2g = (2.45)²/2(9.81) = 0.306 m
t₁ = H/v₀ = 0.306 m/2.45 m/s = 0.125 s
t₂ = √2(H + 98.8)/g = √2(0.306+ 98.8)/9.81
t₂ = 4.495 s
Total time = 0.125 s + 4.495 s = 4.62 seconds