Yes, your work is correct. And the problem, while not ideal, is also valid.
Note that there is an "a" in the generic formula they say to use, and there is a different "a" in the problem. When you said, "let a = 1", you were clearly referring to the former, not the latter. The only quibble I might give (and in fact I wouldn't, because you are not the teacher) is that it would be clearer to distinguish the two "a"s when you talk about them, so no one would confuse them. The textbook, not you, caused this little difficulty!
This is not uncommon; we might, for example, have the general rule that a^m * a^n = a^{m+n}, and then apply it to simplify (a+1)^2 * (a+1)^3. In explaining it, I might say things like "the a in the formula represents (a+1) in this problem"; or I might just rewrite the formula as "b^m * b^n = b^{m+n} to avoid confusion. Students need this sort of help; but teachers should have no trouble understanding what you are saying, because we're used to juggling multiple levels of symbols.