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The i5 tops out at 4 thread streams, as I understand it. So, a dual core i5 can hyper-thread to 4 threads, but a quad core i5 doesn't hyper-thread. The dual core i7 is basically equivalent to a dual core i5; the quad core i7 can hyper-thread to 8 threads, and if you're running multiple apps, or an app that can multi-thread to take advantage, the i7 can beat out the i5 in that case.

For general "office" work, email, excel, web browsing, etc, the i5 is perfectly fine.
 
Same difference as a 4 lane highway vs an 8 lane highway in rush hour traffic.

Deeper explanation:
CPUs process information in series of 0s or 1s called bits.
a 1 Ghz computer process 1 Giga(billion) bits per second (hz)

An i5 has hyperthreading which means for every physical core, it can perform work for two threads. A thread is a pattern of 0s or 1s. A lane of the highway if you will.
Since the i5 is typically dual-core it has 2 physical processing cores, each which can perform work for two threads. So you can work on 4 threads at any given time.

An i7 also has hyperthreading but usually ships with a faster clock speed (2 Ghz for this example) and in the most common quad-core design it can perform work on 4 physical processing cores that each perform work on two threads or a total of 8 threads at a time.

So lets just say you have a dual-core i5 running at 1 Ghz and a quad-core i7 running at 1 Ghz, do the math and it turns out to be 4 Billion bits per second in the i5 (4 lanes of traffic) and 8 Billion bits per second in the i7 (8 lanes of traffic)

The only way they'd be close to equivalent is if you had a dual core i5 at 2 Ghz and an i7 at 1 Ghz, but you'd still see better response out of the system with the i7 since the processor can open up some threads to process more background tasks.


Imagine, if you will, a two lane road, populated with trucks, cars, and motorcycles. A hyperthreaded cpu allows the traffic to theoretically double by allowing the motorcyclists to lane split.
 
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