I agree that there is are a number of problems with this assignment:
On page 7 (design) it states that the program should loop for SEVEN STUDENTS, page 8 says FIVE CUSTOMERS.
On page 7 (design) it states that the program should calculate the total number of hours for each student, page 8 says calculate the discounted cost.
I think the problem is on page 8. It looks like some sort of cut and paste error to me. Like you I plan to mark what what is asked of the pupils but I also would welcome a comment from the SQA.