 Solution

The radial retraction of a punctured ball gives a retraction: project away from the removed interior point until reaching the unit sphere. Write $a=x_0$, $v=x-a\ne 0$, and setThe equation $|a+tv{|}^2=1$ is the quadratic equationIts constant term is negative, so it has exactly one positive root, namely $\tau (x)$. Since $|a+v|=|x|\le 1$, that positive root satisfies $\tau (x)\ge 1$. Thus $r(x)\in \partial {\mathbb{B}}^n$ for every $x\ne a$ in the closed unit ball.

The displayed expression is a continuous map on the punctured closed unit ball: its denominator is nonzero there, and its square root has strictly positive argument. If $|x|=1$, $t=1$ is the unique positive root, so $r(x)=x$. These are exactly the requirements for a retraction. The missing interior point is essential: the formula need not extend continuously to $a$, in agreement with the no-retraction theorem.