Sounds like a bad ignition switch, Volvo's are know for the switch to go bad especially if you keep tons of key's on your key ring. The 850 switch is easily replaced by removing the 4 torx screw's under the column cover (2 size's) & unplug the large black connector at the left side of column & then using a long handled flat tip screw driver & remove the 2 retaining screws. Make sure the new switch is in the same position in relationship to the key cly.
You got a electrical problem check the switch boxes make sure there is no burn out amp.
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