A spectroscopic analysis of light emitted in the 200-600 nm wavelength range by Ar⁷⁺, Ar⁶⁺ and Ar⁵⁺ ions after charge exchange in 120 keV Ar⁸⁺-Li collisions is performed. Transitions with Δn = 1 and Δn = 2 for n = 8, 9, 10 and 11 states of Ar VIII following single electron capture are identified and the production cross sections for n = 8 and n = 9 are deduced from emission cross sections and compared with those calculated by the three-body classical trajectory Monte-Carlo method. Lines due to double capture process were observed and identified as Rydberg transitions 3snl-3sn'l' (n = 7, 8 and 9) in Ar VII. Lines due to triple electron capture process were found and identified as transitions 3s²nl-3s²n'l' and 3s3pnl-3s3pn'l' (n = 7, 8) in Ar VI. The configurations produced during the collision provides evidence that electron-electron interaction play an important role in double and triple charge exchange processes.