Mysql Error Sqlstate[Hy000] [1045] Access Denied for User. While Installing Drupal 7 in Localhost

I recently did a clean upgrade from ubuntu 14.04 to ubuntu 16.04. I could easily install drupal 7 in ubuntu 14.04 but my problem is arising when i am creating a new database for drupal 7.43. I followed instruction from Digital Ocean.

I created a database called drupal

CREATE DATABASE drupal;

created a user called drupaluser

CREATE USER drupaluser@localhost IDENTIFIED BY 'password';

granted the user all the privilages to the database

GRANT SELECT,INSERT,UPDATE,DELETE,CREATE,DROP,INDEX,ALTER,CREATE TEMPORARY TABLES,LOCK TABLES ON drupal.* TO drupaluser@localhost;

Flushed the privileges as per the blog

FLUSH PRIVILEGES;

and exited

I went to localhost/drupal and drupal began the installation process, When i reached the database section i got the following error Message from mysql

"Failed to connect to your database server. The server reports the following message: SQLSTATE[HY000] [1045] Access denied for user 'drupaluser'@'localhost' (using password: YES)."

i have installed xampp 7.0.5 which works well but phpmyadmin is not working so i have decided to take this route but i am stuck

Please adivce.