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Shannon, B.C.'s advice is correct. Your '83 had a second smaller key to work the trunk lid. The ignition key is too big to fit. There's probably nothing wrong with the lock.
I somehow lost the trunk key to my '82. Luckily I had a friend with a supply of old keys. Couldn't believe it, but the third key we tried worked... Combination of luck and worn out lock/key I suppose. Worth a shot if you can find someone with such a key? Your local Volvo dealer may have a master key?
Good luck.
-Will
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850 / Mini
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